The ABS Q3 Residential Property Price Indexes recorded Sydney dwelling price growth of 14.6% y/y. Housing market economics holds that after a 6 year stretch...

The ABS Q3 Residential Property Price Indexes recorded Sydney dwelling price growth of 14.6% y/y. Housing market economics holds that after a 6 year stretch of dwelling price growth we should be seeing a significant dwelling supply response, yet to date it has not transpired in Sydney, although much construction does remain in the pipeline. Outside Sydney, price growth appears to be largely contained with no other capital city recording growth of greater than 1.0% q/q in Q3. The sub-indices showed that while house prices have continued to be the stronger performers over the long term, in expensive Sydney attached dwellings recorded growth of 13.2% y/y, with the mid-priced bracket the clear out-performer. (VIEW LINK)