Sydney homes in on million-dollar city

Australia’s largest city is tantalisingly close to achieving a median house price of $1 million, despite an expected fall in price growth.

Propell National Valuers is predicting that Sydney house values will grow 13 per cent over the next 12 months, pushing the median price from $880,000 to $994,400.

That projected growth rate is a decrease from the 16.4 per cent growth rate of the previous 12 months.

The report also forecast that Sydney’s median unit price will increase from $638,000 to $669,900, with price growth slowing from 8.8 per cent to 5.0 per cent.

Propell has predicted that Melbourne house price growth will slow from 9.8 to 8.0 per cent, while unit growth will slow from 2.9 to 1.0 per cent.

This will push the median house price from $620,000 to $669,600 and the median unit price from $480,000 to $484,800.

For the rest of the country, house price growth should remain steady at 2.3 per cent, while unit prices will worsen from a 0.1 per cent decline to a 0.4 per cent decline.

The fall in unit prices shows the start of a correction period, with an oversupply of units in many capital cities, according to Propell.

[Related: Sharp Sydney decline could be on the cards]

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