AUSTRALIA’S housing market is now valued at a whopping $6 trillion after a half a trillion dollar surge in the past year - led by double-digit jumps in Sydney and Melbourne, with Brisbane pulling up a single-digit third.

The latest CoreLogic RP Data Hedonic Home Value Index, out this morning, found the nationwide surge was mostly spurred by price rises in Sydney and Melbourne, but those days could be numbered given recent investor lending changes.

CoreLogic RP Data research head Tim Lawless said there was no doubt about a two tiered market in existence nationwide.

The strongest annual growth came out of Sydney (18.4 per cent year on year) and Melbourne (11.5 per cent) with Brisbane increasing a relatively modest 3.9 per cent.

“Based on the median dwelling price, Sydney prices are now 72 per cent higher than Brisbane’s and Melbourne’s are 24 per cent higher.”

Sydney pulled its highest rate of value growth in 13 years however Brisbane could still hold its head up, with units here delivering the highest capital city rental yields in the country alongside Darwin (5.5 per cent).

The lowest rental yields were Melbourne houses (3 per cent) and units (4.1 per cent).

“When you consider that Sydney rents have increased by just 2.5 per cent over the past twelve months while values have climbed 18.4 per cent higher, it is easy to see how yields are getting squashed,” he said.

“The combined effect of tighter lending parameters with more focus on serviceability and low LVR’s, potentially higher mortgage rates for investment loans as well as limitations on the pace of investment lending imposed by APRA on Australia’s banks should conspire to slow investor demand in the market. Add to this the growing concern about the Sydney and Melbourne housing markets being overheated and the record low rental yields and the outlook being painted for investment is likely to be one of diminishing demand,” he said.

Sydney was the most expensive city ($790,000 median), while most affordable was Hobart ($305,000).

Source ：http://www.news.com.au/finance/real-estate/housing-market-now-worth-6-trillion-after-whopping-half-a-trillion-surge-over-past-12-months/story-fndbalka-1227467529912