Australian capital city homes cost 1.3% more in October than in September, according to RPData-Rismark data, pushing the year-on-year growth rate to a three-year record high of 7.9%.
RP Data reported today that the monthly price hike was driven predominantly by growth in Sydney and Melbourne. From the report:
UBS economists Scott Haslem and George Tharenou said the data continued a “clearly positive trend in the housing market”, after data from the ABS yesterday showed residential building approvals up an adjusted 14.4%.
Here’s what they said:
This indicates the RBA’s rate cuts are gaining more traction in the domestic economy.
Looking ahead, amid a prolonged period of record low interest rates, we also expect spill-over of these wealth effects to deliver better consumption growth over the year ahead.
We continue to expect national [dwelling] price growth to reach 10% y/y in coming months.