Prices Accelerate Again In AugustAustralian house prices have continued to increase in August across five capital cities, recording a 1.0% growth on a 5-city aggregate basis. This marks the sixth consecutive month of growth, with Brisbane (+1.4%), Adelaide (+1.1%) and Sydney (1.1%) leading the charge.
The August quarter also saw a 3.2% growth in prices, with Brisbane (+4.2%) becoming the price leader. Although prices have risen by 0.1% at the 5-city aggregate level over the past year, each city has experienced different growth rates. Sydney (+1.2%), Adelaide (+2.2%) and Perth (+4.5%) have recorded increases in prices, while Melbourne (-2.3%) and Brisbane (-2.4%) continue to suffer falls in dwelling values.
The RBA began raising interest rates in May last year, yet the house price recovery has been exceptionally strong in the face of muted sales volumes and declining borrowing capacities. Factors such as record net overseas migration, higher rents, and a shortage in available stock have offset the effects of RBA actions, allowing prices to continue to rise throughout the country.
The RBA is expected to lower interest rates next year which is likely to lead to further price growth.
