Live markets, Tuesday, June 15, 2021
Home prices across the country saw their biggest quarterly increase in more than a decade in the first three months of 2021.
Data from the Australian Bureau of Statistics released this morning showed residential property prices jumped 5.4%, the biggest quarterly increase since the December 2009 quarter.
All cities reported an increase, led by Sydney (up 6.1%). Prices in Canberra jumped 5.6%, they rose 5.2% in Perth while in Melbourne they rose 5.1%. Prices in Adelaide and Brisbane rose 4 percent while they rose 4.7 percent in Darwin.
The total value of the country’s 10.6 million residential dwellings increased by $ 449.9 billion to $ 8.3 trillion. This is the largest quarterly increase on record, and it brings the average price of residential accommodation across the country to a record high of $ 779,000.
Some areas, however, are much more expensive.
ABS head of price statistics Michelle Marquardt said NSW accounted for 40% of residential housing value.
“The average price of residential housing in New South Wales has risen to $ 1.01 million. It was the first time that a state or territory had seen the average house price exceed $ 1 million, ”she said.
The data came out as special research conducted by UNSW found that the national economy was less stable and suffered from declining productivity due to soaring house prices. He found that rising prices diverted money from more productive activities and affected the lending policies of the country’s major banks.
On an annual basis, national property prices have increased 7.5%. The largest increase was recorded in Canberra (10.9%), followed by Hobart (10.2%) and Perth (9%).
Prices in Sydney have increased 8% over the past 12 months, while in Melbourne they have increased 5.9%.
An increase in the number of investors returning to the housing market was noted by the Reserve Bank of Australia in the minutes of the June board meeting released on Tuesday morning.
“Growth in home loans has increased, with continued strong demand from homeowners, particularly first-time buyers,” the minutes said.
“Investor borrowing growth had also started to pick up in recent months, from low levels. “
Recognizing that house prices have continued to rise in all major markets, the central bank board reiterated the need to maintain lending standards and carefully monitor borrowing trends in an environment characterized by high demand for housing, rising prices and low interest rates.
he residential construction sector saw strong construction activity in the March quarter, which the RBA says will strengthen “despite historically low population growth” due to government incentives such as HomeBuilder, low rates of ‘interest and high levels of approvals.