Australian housing prices increase in a faster clip in a year as the rates cut the fuel demand

Sydney Australian housing prices (Reuters) increased faster in a year in September, driven by tariffs of rates and low record listings, the property consultant said Wednesday.

National housing prices increased 0.8% to a medium record value of $ 857,280 ($ 565,462) in September, marking the strongest monthly gain since October last year, according to cottality figures, previously Corelogic.

For quarter, prices rose 2.2%, compared to a 1.5% increase in the second quarter.

The monthly gain was wide -based, directed by a jump of 1.2% in Brisbane and an increase of 1.6% in Perth. Sydney prices increased 0.8%, while Melbourne was delayed a bit to 0.5%.

“The spring sales season is emerging to be strong, with sellers who claim the driver’s seat,” Cotality said.

“The low levels of actions announced and the most demand of the buyer are a recipe for solid sales conditions that will probably see that prices rise even more to spring and at the end of the year.”

Cotality said that the strongest growth rate had moved from the lower quartile of the market to the wide environment, probably a reflection of a greater borrowing capacity thanks to the lowest interest rates.

The Australian Reserve Bank kept stable interest rates at 3.60% on Tuesday, but has reduced rates three times this year as inflation slowed down. The Central Bank said recent data suggested that inflation could be greater than the prognosis in the third quarter and that the economic perspective remained uncertain.

The new policy of the Labor Government to help the first housing buyers to enter the market with only a 5% deposit will enter into force as of Wednesday. That is expected to advance demand.

The rental market also shows renewed signs of oppression, with national vacancies rates that are reduced to a minimum record.

Rentals increased 0.5% in September from a month earlier, carrying quarterly gain to 1.4%, the highest since June last year.

($ 1 = 1,5161 Australian dollars)

(Stella Qiu report; Jamie Freed edition)