Australian Housing Prices Surge Amidst Record Low Listings and Rate Cuts
Australian home prices rose at the fastest rate in a year this September, fueled by interest rate cuts and low property listings. The median national price reached a record A$857,280, with significant growth in cities like Brisbane and Perth. The Labor government's new homebuyer policy could further boost demand.
- Country:
- Australia
In September, Australian home prices saw their fastest annual increase, propelled by recent rate cuts and historically low property listings, according to data from Cotality. Nationally, home values rose by 0.8% to an all-time high of A$857,280, marking the strongest monthly surge since the previous October.
The quarter saw a 2.2% jump, with significant climbs in Brisbane and Perth at 1.2% and 1.6% respectively. While Sydney also experienced an uptick of 0.8%, Melbourne's growth was more subdued at 0.5%. As the spring selling season approaches, low stock levels coupled with higher buyer demand suggest continued price elevation.
Despite the Reserve Bank of Australia holding interest rates steady at 3.60% after three cuts this year, the housing market may further heat up as the Labor government introduces a policy enabling first-time buyers to purchase with a 5% deposit. Concurrently, the rental market remains tight, with vacancy rates reaching historical lows.
(With inputs from agencies.)
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