Sydney's continual rise in property prices has become a focal point in the Australian real estate market, despite the city consistently being among the nation's most expensive in terms of housing prices. According to the latest PropTrack price index, Sydney's median house price rose by 6.39% last year, reaching USD 1.107 million, while property prices across New South Wales also hit historic highs, averaging a 4.47% increase to AUD 729,000.

This sustained upward trend reflects strong demand and supply shortages in the market, particularly in the capital region. Reports indicate that Sydney house prices have risen for 19 consecutive months, although the pace of growth has gradually slowed with the end of the summer selling season. Market dynamics suggest that buyers are deferring purchase decisions when faced with more choices, which has somewhat tempered the rate of price increases.

Economist Eleanor Craig from PropTrack noted, "Sydney has become one of Australia's most unaffordable property markets, yet prices continue to climb to new highs."

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Despite increasing economic pressures and financial challenges, the long-term investment potential in real estate remains a strong motivator for many buyers. With expectations of continued price increases, many may decide to purchase sooner to avoid higher costs in the future. However, the rapid rise in property prices has outpaced income growth, leading to continued challenges in housing affordability as mortgage servicing costs rise and lending conditions tighten.

Since March 2020, Sydney house prices have surged by 37.8%, with New South Wales seeing an even steeper increase of 53.7%. Suburban areas around the capital have seen particularly notable increases: Inner Southwest Sydney rose by 9.71% to AUD 1.189 million; Western Sydney rose by 9.59% to AUD 1.041 million; Parramatta rose by 8.94% to AUD 972,000; Inner West Sydney rose by 8.11% to AUD 1.323 million; and Richmond-Tweed rose by 7.74% to AUD 857,000.

Craig explained, "Despite interest rates remaining high, national house prices have risen for 18 consecutive months, hitting new highs again in June."

In contrast to market performance during the pandemic, capital city house prices are now outpacing regional markets, rising by 6.91% and 5.61% respectively to USD 855,000 and USD 643,000. This trend indicates that despite economic and financial fluctuations, Sydney's housing market continues to maintain its leadership position in the national real estate market, attracting investors' and buyers' attention alike.