Sydney house prices in hyperdrive, with rest of Australia in second gear: Domain Group

The median house price for Sydney is now $873,786, after a 14% rise in prices during 2014, according to Fairfax's The Domain Group.

Apartments rose 10% over the year to $597,668.

Domain Group senior economist Dr Andrew Wilson said the figures confirmed the Sydney property market was in "hyperdrive."

It came on top of the 15% house price rise in 2013.

He said the rest of the country was "in second gear". 

Much of the Sydney growth was in the December quarter when the median house price increased 4.1%.

Melbourne house prices grew by just 0.6% over the December quarter, up annually by 3.4% to a $610,470, according to Domain Group's House Price Report. 

Wilson forecasts 7% to 10% growth for 2015 for Sydney, Fairfax Media reported on the Fairfax group report. Dr Wilson expects Melbourne house prices to grow by 3% to 4% this year.

Sydney's upper north shore and north-west rose by a stellar 21% to $1.18 million, the Sydney inner west by 18% to $1,275,000 while just 7% growth in the Sydney east and inner city to $1.65 million.

The lower north shore had the highest media at $1.81 million, up 13%.

Wilson said most of the house price growth was in the $1 million to $2 million price range.

Canberra house prices increased in the final 2014 quarter to $585,630 and units increased to $412,835.

The median house price growth for the year was 0.5%, the smallest annual rise since 2011.

Units were down over the year by 0.9 per cent, the Domain Group report indicated.

The national median house price increased by 2.1% in the quarter – the strongest for the year - while units had a national quarterly rise of 1.7%.

Brisbane's median house price hit a record $489,680, up 1.5% over the quarter and 6.1% over a year, slightly stronger than the 5.1% growth in 2013.

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