Average Sydney house price to reach $1 million by December and $2 million by 2030

It will be a jolly Christmas for homeowners across Sydney, if predictions by Domain Group ring true with the median Sydney house price tipped to reach $1 million by the end of the year.

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Domain Group said there are a number of factors that could see the average house price soar further, such as heightened demand in the north of Sydney. For instance, in March alone there was a 10% price growth in the northern beaches and 10.5% in the lower north shore.

The research also showed that there will be no slowing down in the Sydney market, with senior economist Andrew Wilson predicting a $2 million median house price by 2030 and a $3 million median by 2038.

Another Reserve Bank of Australia cash rate drop at this Tuesday’s board meeting may also drive prices up over 2015, according to Domain Group.

RP Data head of research, Tim Lawless explained that “while annually, the rate of capital gain has slowed since April last year, since the February rate cut the Sydney and, to a lesser extent, Melbourne housing markets have caught a second wind...The Sydney housing market stands head and shoulders above the other capital cities over the cycle to date.”

Sydney dwelling values are now 40.2% higher relative to the May 2012 through and factoring in the previous 2009/10 phase of growth, Sydney values are now up 65.4% post GFC.