New Australian house price figures have revealed that property values in Australia’s eight state capitals grew by a combined total of 2.4 per cent in the second quarter of 2013 – leaving average house values in the country at an all-time high.
According the latest Australian Bureau of Statistics figures, house price growth was strongest in Perth, where values increased by 3.4 per cent between April and June 2013, followed by Darwin (2.9 per cent), Sydney (2.7 per cent), Melbourne (2.4 per cent), Brisbane (1.9 per cent), Canberra (1 per cent) and Brisbane (0.3 per cent).
The only capital to not experience a price rise during this period was Hobart, where prices fell by 1 per cent.
On an annual basis, properties in Western Australia’s capital, Perth, are currently 11 per cent higher than they were a year ago, while Darwin (7.7 per cent) and Sydney (6.1 per cent) have also recorded significant house price growth over the past 12 months.
However, despite the rising prices, industry experts do not believe that Australia is heading for a property bubble. The Reserve Bank of Australia has declared itself as ‘comfortable’ with the recent surge in property prices.
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A series of interest rate cuts, the first of which was introduced in November 2011, have been given as the main factor behind the price rises. The RBA has announced it has no plans to lift rates anytime soon.