RTX1I3F3
Sydney residents walk past a newly-completed apartment development in Sydney's inner-city suburb of Zetland, June 24, 2015. Home price growth in Australia's harbour city is well into the double digits, fed by record low interest rates, a rapidly rising population, chronic undersupply, a tax system that pampers property investors and a stream of Asian money. Picture taken June 24, 2015. Reuters/Jason Reed

Melbourne property price growth is all set to topple Sydney soon, according to new data.

In August, Sydney property price growth surpassed all other capital cities, but Melbourne has been quick enough to match and even outpace it within weeks’ time.

According to property information and analytics provider CoreLogic RP Data, while the Harbour City’s housing values increased by 1.1 percent, capital cities grew only by 0.3 percent nationally. In case of Melbourne, growth record for dwellings was as low as zero in the month of August and department values also plummeted by 0.2 percent.

However, Domain Group senior economist Andrew Wilson indicates a different auction story altogether. In fact, Sydney’s auction clearance rate decreased while all other major capital cities witnessed an increase over the past month.

Sydney’s innumerable homes, which are up for sale, gave late winter auction market a run for their money. The share prices fell with clearance rate of 76.4 percent, straight down from 79.7 percent, whereas Melbourne’s clearance rate crept up to 76.2 per cent, ahead of 75.2 per cent in July.

Followed by Canberra that has 71.2 percent, Adelaide has 67.8 per cent and Brisbane records 55.6 per cent. Wilson said both the capital cities are moving to the opposite directions. “Things are heating up in Melbourne and the results are pretty impressive for other capital cities too,” he said.

In the quarter reports, Melbourne recorded dwelling values at 8 percent which was the highest compared to other cities. Sydney recorded at 7.4 percent.

However, CoreLogic RP Data head of research Cameron Kusher warned that predicting an early slowdown for Melbourne or Sydney based on the quarterly growth figures, would be misleading. “In Melbourne we’re expecting a lot more auction strength over spring,” Kusher added . He suggested that the surge might slow down in Sydney and Melbourne but nothing could assure if that would occur now.

Apart from Sydney, Adelaide and Darwin were the only other cities that recorded a jump in dwelling values while Melbourne and Brisbane remained flat over August. And the rest of the capital cities recorded a fall.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.

RELATED STORIES