The sharp turnaround in house prices has prompted property economists to revise forecasts upward, with Sydney and Melbourne leading the robust growth in housing demand.
Recent analysis of property price growth in Australia’s two largest cities reveals that the rebound has not been uniform across all segments of the residential market.
The top end of the market has experienced the largest jump in house prices, with more lethargic growth in low to medium priced homes.
“It is not unusual for the top-end of the market to lead a price cycle with the lower end following,” Domain economist Trent Wilshire said.
“This upswing looks to be broadly following this historical pattern.”
Domain’s analysis tracks house and unit prices across five different price segments—price quintiles—of Sydney and Melbourne’s residential market.
In Sydney, house prices have made the most marked increase across properties in the $1 million to $1.5 million range, which have jumped by up to 8.6 per cent over the past six months.
The largest increases were seen largely across Sydney’s inner-west, northwest and southern suburbs.
In contrast, unit prices in the lower $450,000 price range of the market fell by 2 per cent over the last six months.