Sydney's median house price is now $1 million, making the city more expensive than London and fast approaching New York. House prices in Sydney have surged 22.9 percent over last 12 months, double the national median house price growth of 11.7 per cent, the Domain June House Price Report released today shows. 

Sydney is the standout city in Australia in terms of property price growth over the quarter, and has emerged as a significant player in the international property market. The median house price has now surpassed that of London, is fast approaching New York but remains well behind the property prices of Paris.  

Most other Australian cities also reported a steady growth, with the exception of Perth where house prices are falling as confidence wanes.

Commenting on the report, Domain Senior Economist Andrew Wilson said Sydney's strong growth is expected to continue for the foreseeable future.

“Sydney’s median house price has increased by 22.9 per cent over the 2014-15 financial year which is one of the highest annual growth rates ever recorded by the city. It’s a result that is now exceeding the boom time results of 2001 and 2002,” said Wilson. “The main catalyst has been low mortgage rates — the lowest since the mid 1960s. It’s a perfect storm of local supply and demand factors generating the price growth. A strong local economy, coupled with high levels of migration and a chronic undersupply of housing and record levels of investor activity have also been a significant contributor.”

Confidence and momentum will continue to sustain the Sydney market through the remainder of 2015, said Wilson, though he doubts growth rates will match the record-breaking June quarter performance.

"Nationally, the median house price jumped 4.3 per cent over the quarter – and increase of 11.7 per cent over the year," said Wilson.