Data shows prices are up 6.4 per cent in Sydney so far this year (2015), compared to 3.9 per cent gains in Melbourne, a 0.1 per cent rise in Brisbane, a 0.2 per cent decline in Adelaide and a 1.6 per cent slide in Perth.
Property analysts, such as Louis Christopher from SQM Research, say that most other data confirms that Sydney is where the main action is taking place.
"At this point in time we think the [Sydney] market's about 25 per cent overvalued and, if our forecasts come in for this year, it'll actually get up to about 40 per cent overvalued. It's probably about the second highest overvaluation point we've ever recorded, the highest being back in 2003 when, on our numbers back then, the market was about 55 per cent overvalued."
Mr Christopher said that, beyond Sydney and some parts of Melbourne, there is generally not much upward momentum in the Australian housing market.
"We don't believe, for example, there's a national housing bubble," he said.
"We can definitely pinpoint areas where the markets have not moved for a very long time and they are undervalued compared to incomes.
"So, even with the cheap credit, it hasn't influenced every market everywhere, because local economic factors have taken a greater hold."
Mr Christopher points to collapsing home prices in most mining towns, falling prices in Darwin and Perth, and relatively stagnant prices over recent years in Brisbane, Adelaide, Canberra and Hobart as evidence.
Antony Fung
Ashfield Real Estate
www.ashfield-realestate.com.au
1300 938 931
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