According to CoreLogic’s daily dwelling values index, Sydney’s property market is tracking towards 20% price growth this year.
So far in 2021, Sydney dwelling values have risen an extraordinary 4.7% with the pace of growth quickening over the past six weeks:
Sydney dwelling values have gone almost vertical.
Quarterly growth is now the strongest in Australia at 5.2%, after growing by 2.5% in February and another 1.7% in the first two weeks in March.
The two key short-term indicators for Sydney’s property market suggests momentum will remain strong in 2021.
New mortgage growth has rebounded strongly, which typically leads price growth:
The rebound in mortgage commitments points to strong price growth for Sydney property.
The rebound in Sydney auction clearance rates has been even stronger, which also typically leads dwelling value growth:
The sharp rebound in Sydney auction clearances is also pointing to stronger dwelling price growth.
Detached houses in Sydney are likely to experience much stronger growth than for dwelling values as a whole, given Sydney’s high-rise segment has been hit hard by the collapse in immigration.
Regardless, Sydney property is on track to match 2015’s growth (20%), which was the biggest price boom this century.
