House prices across Australia’s major cities are growing at their fastest rate since 2010, with Sydney’s market surging to its quickest pace in nearly 15 years.
Prices for the combined capital cities jumped 12.9 per cent in the year to March, the highest annual growth rate since May 2010, according new data from market information company CoreLogic.
Sydney recorded an 18.9 per cent jump in house prices over the year – its fastest rate since November 2002.
Sydney, together with Melbourne, Canberra and Hobart are now showing an annual growth rate in home values higher than 10 per cent, while values in Perth and Darwin continue to lose ground.
In March, house prices across the major cities rose 1.4 per, with the nation’s two biggest cities, Sydney and Melbourne, recording gains of 1.9 per cent and 1.4 per cent, respectively.
Tim Lawless, head of research at CoreLogic, said the March results highlight continued resurgence in the pace of capital gains.
“This became evident through the second half of 2016, fuelled largely by lower mortgage rates and a rebound in investment activity,” he said.
The national auction clearance rate jumped to 78.1 per cent in the week to April 2, from 74.5 per cent the previous week.
Sydney had the highest rate, at 80.7 per cent, with Melbourne and Adelaide both at 80.6 per cent.
Canberra had a clearance rate of 76.3 per cent and in Brisbane 56.8 per cent of auctioned properties sold.
However, less than half of the auctions held in Tasmania and Perth were successful, with clearance rates of 42.9 per cent and 35.7 per cent, respectively.
The number of properties auctioned dropped 16.5 per cent to 2,646 in the week to April 2 from 3,171 last week, when auction volumes reached their second highest level so far in 2017, according to CoreLogic.
Mr Lawless said low listing numbers continued to create a sense of urgency for buyers.