Sydney's housing prices is returning to its 2017 peak!

CoreLogic's latest data report shows that Sydney housing prices have returned to their peak levels in early 2017 and have maintained a high upward trend.

According to the statistics report, the current median house price in Sydney is $895,900, of which the median price of houses is $1,061,200 and the median price of apartments is $738,200.

CoreLogic research director Tim Lawless said that the strong performance of Sydney house prices is not surprising. "After the Sydney Home Value Index reached its peak in early 2017, due to many market factors, it once fell sharply, and then began to slowly recover. But last year due to the impact of the pandemic, it fell again. However, since October 2020, property prices went up by 5.7%, setting a new high.

He also pointed out that Sydney's high-end property market has experienced significant growth, and the mid-to-low-end market is expected to rise in 2021.

Currently the overall housing price in Australia are on the incline, and the auction clearnace rate continues to rise. Among them, Sydney has recorded an auction clearance rate of more than 80% for the 6th consecutive week. The demand for home purchases has far exceeded the current market supply, and many buyers are worried about missing out on opportunities. This is also the most important factor stimulating the strong trend of the housing market.

The Prime Minister of Australia Publicly stated, "be open to immigration policy".

Recently, Australian Prime Minister Scott Morrison publicly stated that the federal government maintains an open attitude towards immigration policy. It is essential that the number of immigrants in Australia will be 72,000 in the 2020 - 2021 year. Therefore, the government needs to open the country as soon as possivle, in order to further stimulate the recovery of the Australian economy.

So, what impact might the reopening of international borders have on housing prices? The answer is: it will definitely promote the continued upward trend of housing prices.

CBA Australian Economic Dreictor Gareth Aird said that the reopening of international borders and the return of a large number of immigrants will further promote the rise of housing prices, especially in the current low interest rate environment, and will also stimulate the recovery of the rental market. But Shane Oliver, Chief Economist at AMP Capital, said that the international borders need to be reopened catiously and gradually to ensure that a sudden surge in housing demand does not lead to further increase in housing prices.

Sources: CoreLogic