New figures released by the Australian Bureau of Statistics (ABS) show that property prices in Australia’s eight capital cities rose by an average of 1.9 per cent in the third quarter of 2013.
The new data shows that the price increase is being driven by Sydney, with property prices in Australia’s largest city increasing by 3.6 per cent, followed by a 1.9 per cent gain in Melbourne.
National capital Canberra, and Adelaide, South Australia’s capital, were the only cities to record price falls in this period. House prices in both cities fell by 0.6 per cent in the three months to September, the ABS figures show.
Overall, the ABS data shows that property prices in Australia are now 7.6 per cent higher than they were a year ago – the largest annual increase recorded since 2010.
Last week, separate housing data released by RP Data-Rismark showed that property prices across Australia’s capital cities rose by 1.3 per cent in October.
Like the ABS findings, the latest RP Data-Rismark home value index also found that much of the national growth was down to the performance the property market in Sydney, where prices rose by 2.4 per cent. The index shows that the average price of a property in Sydney is now AUS$610,000 – the highest in Australia. The cheapest capital city is Hobart, Tasmania where the average property price is just AUS$303,000.
The RP figures show that combined property prices across Australia’s capitals cities are now 12.6 per cent higher than a year ago.
Record low interest rates and a spate of mortgage loan offers from banks and other lenders have been given as the main reason behind Australia’s rising house prices.
Article published 4th November 2013