Sydney Breaks House Price Record

Australian Property Monitors revealed that Sydney has broken house price records with its highest median price, on Your Investment Property.

Median house prices for outer Sydney and Canterbury-Bankstown improved from the 2011 peak by over 10%. The inner west increased by 9.5% and the upper north shore was 8%. Although prices have risen for the eastern suburbs, it’s 0.4% below the record.

In July this year, Fairfield, an outer suburb in Sydney, sold a new house with seven bedrooms for $1 million. Also in July, a property in Mount Druitt sold for $780,000.

However, SQM Research’s managing director Louis Christopher said that these high house prices will come to an end. In 2011, he predicted that the outer suburbs of Sydney will perform better than other areas, and they’ll continue to do so until the end of 2013.

If house prices increase further, however, and interest rates go up, the chances are high that the outer suburbs will begin to underperform.