Australian property prices are rising, with national home values increasing by 1.1% in October alone, the strongest monthly growth in over two years. This upward trend is driven by factors like previous interest rate cuts, limited housing supply and renewed demand from first-home buyers and investors.
Key details on price increases...
Monthly growth: National home values rose 1.1% in October, according to CommBank, Australian Broker, and the ABC.
Annual growth: The annual increase is between 6.1% and 7.5%, with some data showing double-digit annual growth of 10.6%.
Price surge: The typical Australian home is worth approximately $65,000 more than it was a year ago.
Driving factors...
Interest rates: Earlier interest rate cuts have stimulated the market.
Low supply: A shortage of properties available for sale is creating a competitive "seller's market”.
Increased demand: There has been a resurgence in interest from first-home buyers, who can enter the market with a smaller deposit through government schemes, as well as from investors.
Leading cities...
- Perth, Brisbane, and Darwin have led the pack in terms of price growth.
- Melbourne has also seen a significant increase, surpassing Sydney for the first time in six months.
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Barbara Hutson