Aussie home prices keep rising in Oct, new listings surge

Nov 02, 2021

Sydney

(REUTERS) AUSTRALIAN home prices kept climbing in October, with median values in Sydney having risen by a quarter in the past year, although a rush of new listings and tighter rules on lending could take some steam out of the market.

Data from property consultant CoreLogic on Monday showed national home prices rose 1.5 per cent in October, matching September's gain. Values nationally were up a steep 21.6 per cent on last year, the fastest pace since 1989, while regional prices climbed 24 per cent amid a pandemic-driven shift out into the country.

Sydney prices added 1.5 per cent in the month to be up 25 per cent for the year, with median values at A$1.01 million (S$1.02 million). Melbourne was up 16 per cent from a year ago, Brisbane 22 per cent and Perth 16 per cent.

The boom has been a windfall for household wallets and consumer confidence. The Australian Bureau of Statistics estimates household wealth surged a record A$735 billion in the June quarter alone, driven mainly by property.

Price growth is far outstripping wages, however, forcing would-be buyers to borrow ever more and alarming regulators, who announced a modest tightening of lending standards last month.

The Reserve Bank of Australia (RBA) has so far resisted pressure to raise interest rates to restrain the market, arguing it would only slow the economy and cost jobs.

But the central bank holds its November policy meeting on Nov 2 (Tuesday) and speculation is intense it will temper its stimulus stance, perhaps by dropping a commitment to keeping bond yields at 0.1 per cent.

The easing of coronavirus lockdowns in Sydney and Melbourne has seen a surge of 47,040 in new listings in the past month, said CoreLogic. That was almost 23 per cent higher than October last year and 47 per cent above their recent lows.