It is interesting that they used a 17 year period from 1993, which was the low point of housing prices following the recession of the early 1990's, rather than a 20 year period. More recent data indicates that the the average annual rate of growth is around 5%.
Figures showing a overall capital growth rate of 233% over a 17 period are not very useful in any type of forecasting the benefits or costs of owning an investment property. I have calculated the average annual rate of growth of the figures published in the Sydney Morning Herald which show an annual growth of the Sydney average medium house price over the 17 year period between 1993 and 2010 of 7.3%.
| Medium House Price | Medium House Price | 17 Year Change | Annual Compounding Rate | |
| (July Qtr 1993) | (July Qtr 2010) | |||
| Inner West | $ 208,000 | $ 870,000 | 318% | 8.8% |
| City & East | $ 290,000 | $1,210,000 | 317% | 8.8% |
| Northern Beaches | $ 277,500 | $1,025,000 | 269% | 8.0% |
| Lower North | $ 368,000 | $1,330,000 | 261% | 7.9% |
| Sydney average | $ 188,050 | $ 626,444 | 233% | 7.3% |
| South West | $ 120,000 | $ 397,000 | 231% | 7.3% |
| South West | $ 218,000 | $ 701,000 | 222% | 7.1% |
| West | $ 127,000 | $ 405,250 | 219% | 7.1% |
| Upper North Shore | $ 250,000 | $ 793,250 | 217% | 7.0% |
| Canterbury Bankstown | $ 166,000 | $ 500,000 | 201% | 6.7% |
