(Bloomberg) -- Sydney house prices posted their largest quarterly gain in almost 33 years, as cashed-up buyers snapped up high-end properties amid low interest rates and a lack of supply.
Nationwide, values rose faster in May than the previous month, posting a 2.2% rise, capping off the quarter with a 7% lift, according to data released by CoreLogic Inc. Tuesday. Of 334 areas analyzed by the firm, 97% recorded a boost to housing values over the past three months, the data show.
“Such a synchronized upswing is an absolute rarity across Australia's diverse array of housing markets,” Tim Lawless, research director at CoreLogic, said in a statement.
Capital cities outpaced price growth in regional areas in May, with the most expensive end of the market driving the highest rate of price appreciation, he said.
In Sydney, the upper segment of the market rose in value by 12% in the three months to May 31, more than doubling prices at the lower end of the market. Sydney's overall quarterly performance was the best since October 1988, according to CoreLogic.
Over the past 12 months, Australian home values posted a 10.6% rise, with Melbourne the worst-performing of the capital cities. House prices in the Victoria state capital increased just 5% as residents endured repeated strict lockdowns to combat the coronavirus pandemic.
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