JUST $10,000 separates median property prices in Canberra and Sydney, as strong five-year growth in the ACT closes the gap between the cost of owning a property in the two cities.
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The latest RP Data-Rismark index found median dwelling prices in the ACT were up 3.8 per cent for the year to July at $490,000 - just $10,000 short of Sydney's median price of $500,000, which fell 0.6 per cent in the same period.
Strong value growth in the ACT over the past five years has pushed median housing prices towards parity, with few Sydney suburbs recording growth of more than 6per cent while the Woden Valley experienced housing price rises of up to 36.5 per cent.
South Canberra values rose 10.9per cent in the period, while Gungahlin was the worst performing with 5.5 per cent growth - about equal to inner-Sydney's residential growth in the period.
RP Data national research director Tim Lawless said the closing gap between Sydney and Canberra median dwelling prices reflected the consistent trend that emerged in June 2000 and continued until the two cities last reached parity in January 2009.
''During this time the price gap narrowed from a peak of about 60per cent in June 2000 to January 2009 when the median prices were equal to each other,'' he said.
Meanwhile, RP Data's figures show the price gap for houses in Canberra and Sydney is $12,625, with Sydney's median $561,625 and Canberra's $549,000.
The median price gap for units was $38,500, following a strong performance in Sydney and weak results in Canberra.
Sydney's unit median price was up 2.5 per cent for the year to July at $458,500, while Canberra's fell 5.9 per cent over the same period for a median of $420,000.
Mr Lawless said a range of factors had pushed median dwelling prices in the ACT up, despite the slump in units.
''Household incomes in Canberra are some of the highest in the nation, rental rates are also quite high,'' he said.
''In July the average house rent was $524 a week compared with Sydney's $549 a week, which encourages more people to own.''
The latest Australian Bureau of Statistics figures reveal Canberra's average equivalised disposable weekly household income was $1101, almost a third above the national average.
