Melbourne house prices jumped again in early August

Scott Barbour/Getty Images

Australian house prices continued to push higher in early August, led yet again by Melbourne.

According to data released by CoreLogic today, prices across Australia’s five mainland state capitals rose by 0.3% in weighted terms last week, driven by a further 0.5% lift in Melbourne.

The gain followed a 3.1% surge in Melbourne property prices in July, the fastest of all Australian capital cities last month.

Elsewhere prices increased by 0.5% in Adelaide, outpacing gains of 0.2% and 0.1% in Sydney and Brisbane. Perth, at 0.1%, was the only city to register a decline in the median property price.

Source: CoreLogic

Largely reflecting strong growth in Melbourne, prices across the mainland state capitals rose 0.7% over the past four weeks, extending the gains so far this year to 6.2%.

The national increase has been driven by Australia’s largest housing markets — Sydney and Melbourne — where prices have risen 7.5% and 9.6% so far in 2017.

The continued strength in Melbourne property prices, and to a lesser degree Sydney, reflect recent trends in auction clearance rates.

According to data released by CoreLogic on Sunday, both Melbourne and Sydney recorded clearance rates in excess of 70% last week, a level that has typically coincided with double-digit price growth in the past.

That not only reflects stronger economic conditions in these cities but also faster population growth than other Australian capitals over the past 12 months.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.