New figures show that Australian property prices have posted their strongest quarterly gain since the 4th quarter of 2010.
According to the latest RP Data-Rismark Home Value Index, the value of a residential property rose 4 per cent nationwide in the three months to August – the highest quarterly rise since the property boom began to slow down in late 2010. A recent drop in interest rates and an upturn in residential construction activity are the two main factors thought to be behind the increasing house prices.
Sydney experienced the highest property price rises of any Oz capital city during this period, with prices rising by 5.4 per cent, followed by Melbourne (4.8 per cent), Canberra (3.7 per cent), Darwin (3.4 per cent) and Perth (3.1 per cent).
However, much of this price growth was driven in the first two months of the quarter, with values in August slowing considerably. “We’ve had a really strong June and July but a more moderate August,” said RP Data analyst Cameron Kusher. “It’s definitely the low interest rates that’s driving this activity.
“The thing from here will be what happens in spring. It’s looking like a pretty good spring selling season – the amount of stock on the market is fairly low and clearance rates are quite strong.”
According to the latest Home Value Index, the number of new residential properties approved for construction rose by 10.8 per cent nationally in July – the first rise in activity for three months. A majority of the new properties being constructed are apartments.