Australian house prices rose in June for the 17th consecutive month as tight supply outweighed demand pressures from high interest rates, cost-of-living squeezes and tight lending conditions. real estate consultant CoreLogic said on Monday.
CoreLogic data showed that home prices nationwide rose 0.7% in June from a 0.8% gain in May. Prices rose 8.0% from a year earlier.
The persistent growth comes despite a number of downside risks,” CoreLogic research director Tim Lawless said in a statement, pointing to the country’s cost-of-living squeeze, interest rates at 12-year highs, affordability of housing and rigorous credit policies by lenders.
“Resilience in the housing market is returning to tight supply levels that maintain upward pressure on values,” he said.
Among state capitals, monthly prices rose fastest in Perth, up 2.0%, while in Adelaide they rose 1.7% and in Brisbane they rose 1.2%. Prices in Melbourne fell 0.2%.
Demand factors influenced price movements across the states, “particularly with interstate migration rates remaining well above average in Western Australia, Queensland and previously South Australia,” CoreLogic said.
Australian consumer inflation accelerated to a six-month high in May, while a key measure of core prices rose for a fourth month, according to data released last week, prompting markets to raise the possibility of another interest rate hike this year.
The Reserve Bank of Australia has kept interest rates unchanged at 4.35% for five consecutive meetings.
