Property prices in Australia have risen at their highest monthly level for two-and-a-half years, new figures show.
The latest CoreLogic Inc. data shows that house values across Oz increased by 0.8 per cent in August; the biggest gain since April 2017.
The rise has been sparked by a recovery in the markets in the country’s two biggest cities. Property prices in Sydney and Melbourne started to emerge from a two-year slump in June and now once again lead the way in terms of growth.
Sydney house prices jumped 1.6 per cent last month, while Melbourne prices climbed 1.4 per cent.
“The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low,” Corelogic research director Tim Lawless said. “It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy.”
Hobart also recorded a monthly property price rise of 1 per cent, but not all of Australia’s state capitals fared so well. In fact, property prices in Perth fell by 1.8 per cent, while those in Darwin were down 1.7 per cent.
Prices were still down year-on-year, albeit not by so much as they had been. National dwelling values reached their largest annual falls in May, down 7.3 per cent, but by August the yearly loss had trimmed to 5.2 per cent.
“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities,” Lawless added.
Corelogic has predicted a conservative recovery for the property market, but states with more easing of lending and mortgage rates reducing further, the rebound could bounce faster and more dramatically.
Article published 2nd September 2019