Dec 11 2019
The Australian Bureau of Statistics released its Residential Property Price Index (RPPI) for the September 2019 quarter. This data includes the House Price Index (HPI) and the Attached Dwellings Price Index (ADPI), and measures the change in price of residential property across Australia’s eight capital cities.
Overall, residential property prices rose 2.4% in the September 2019 quarter, the strongest growth since December 2016. The strong gain is driven by the growth in property prices in Sydney and Melbourne, with growth of 3.6% in both cities. Hobart property prices rose by 1.3% and Brisbane by 0.7% during the same period. Capital cities that recorded a decline in their residential property prices were Perth, Darwin, Canberra and Adelaide. Perth and Darwin saw a decline of 1.2% in residential property prices while Canberra and Adelaide recorded a 0.5% and 0.3% fall respectively.
The increase in residential property prices is in line with housing market indicators, particularly in Sydney and Melbourne. The historic low cash rate of 0.75, and the decision by the Australian Prudential Regulation Authority (APRA) to ease lending rules by removing the minimum 7% interest rate floor in mortgage serviceability assessments have contributed to growth in residential property prices. Auction clearance rates and sales transactions have improved during the September 2019 quarter.