Residential property prices rose in all Australian capitals in the June quarter of 2016 except Perth and Darwin, according to new figures released by the Australian Bureau of Statistics.
Established house prices for the eight capital cities rose 2.3% in the June quarter, despite serious efforts by the regulator and banks to limit investor lending.
Sydney posted an increase in home prices after six months of falls, taking the annual rate of growth to 3.2% for established houses and 2% for attached dwellings.
Melbourne recorded the strongest through the year growth of 8.2%, followed by Canberra at 6%.
Despite strong housing price growth and clearance rates at a 15-month high, the Reserve Bank is not concerned about over-inflation in the housing market.
Minutes of the RBA’s latest monetary policy meeting, released on this week, show that the central bank is looking beneath surface of the headline numbers.
“Conditions in established housing markets had generally eased over 2016,” the RBA said in the minutes of its board’s meeting this month.
“Other indicators for the housing market had also pointed to weaker conditions than a year earlier,” the RBA added.
June key figures:
| Residential property prices | March quarter ’16 to June quarter ’16 (per cent change) | June quarter ’15 to June quarter ’16 (per cent change) |
|---|---|---|
| Weighted average of eight capital cities | 2.0 | 4.1 |
| Sydney | 2.8 | 3.6 |
| Melbourne | 2.7 | 8.2 |
| Brisbane | 1.1 | 4.3 |
| Adelaide | 0.8 | 3.5 |
| Perth | -1.2 | -4.8 |
| Hobart | 0.7 | 4.9 |
| Darwin | -2.4 | -6.5 |
| Canberra | 2.2 | 6.0 |
Source: ABS
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