Property prices in Sydney have regained all their losses since the property slump in 2010 making it the first Australian city to do so whilst Melbourne has maintained steady prices despite predictions that prices would fall further.
According to RP Data Rismark, property prices in Sydney rose 1.5 per cent in March making it the first city in Australia to regain all the ground lost over the last three years.
The Australian residential property market had a strong month in general with nearly every major Australian city recording growth.
The national house price rose by 1.3 per cent during March which was the second strongest month since property prices fell.
“[Nationally] the March 2013 result is one of the strongest we’ve seen over the 3 years since March 2010,” said Rismark International CEO Ben Skilbeck. Mr. Skilbeck added the only Australian capital city that did not experience any growth was Adelaide.
Cameron Kusher of RP Data added that the Sydney property market had been strong since last May.
“Sydney has experienced a long period of sustained under performance. There’s not a lot of new construction taking place but population growth is starting to ramp up again, which is what I really think is driving that market.
House prices in Melbourne rose by 0.8 per cent in March contradicting RBA predictions that more falls were likely in that city.
Brisbane house prices rose by 1 per cent, Darwin clocked 2.4 per cent, Perth 3.4 per cent and Hobart 2.4 per cent.
Property prices in all cities except Sydney remain below 2010 levels despite the growth trend resuming.