Melbourne house price growth outperforms Sydney in March quarter: APM

Melbourne house price growth outperformed Sydney in the March quarter, according to Australian Property Monitors.

Melbourne’s median house price grew 3.6% over the quarter to $538,922 while Sydney’s grew 1.6% to $673,681.

Andrew Wilson, APM’s senior economist, says, “Melbourne was the standout performer."

Year on year, Sydney price growth is still outperforming Melbourne though, growing 4.2% compared to 3.7% in Melbourne.

"Sydney has now posted consecutive quarters of record level median house prices to clearly move from the recovery phase that commenced early in 2012 into a solid expansionary phase of cyclical house price growth," Wilson says. 

Sydney’s median house price is at a record high.

In Sydney, the median apartment price dropped 1.6% over the quarter after a 3.6% rise in December. In Melbourne median apartment prices rose 2.6% over the quarter, the third consecutive rise.

Across the nation, house prices grew 1.7% over the quarter and 3.2% over the year. Apartments dropped 0.7% though they are still 0.7% up for the year.

Wilson says this is the best start to the year for country since strong conditions in 2010. He says there is little sign of this changing.

“Buyer activity is set to increase through the remainder of 2013 driven by growing optimism and record low interest rates that have likely bottomed out," he says.

But he says the extent of continued growth will depend on the performance of both the national and local economies.

The national median house price has now risen solidly for two quarters in a row, up by 1.7 % over the March quarter.

Brisbane house prices increase for the third quarter in a row for the first time in three years.

Adelaide and Canberra buck the national trend with median house prices falling over the March quarter.