Australian house prices buck trend
5:00AM
Wednesday May 07, 2008
By Gemma Daley
House prices in the Australian cities of Melbourne, Brisbane and Adelaide rose by more than 20 per cent in the year to March 31, bucking the international housing market crisis and local interest rates at a 12-year high.
Prices in Melbourne rose 25.9 per cent in the first quarter of 2008, compared with the year-ago period, the fastest pace in more than six years.
That was followed by advances of 21.6 per cent in Adelaide and 20.8 per cent in Brisbane.
Annual house prices in the nation's eight state capitals gained 13.8 per cent, matching the previous quarter as the fastest pace in four years, the Australian Bureau of Statistics said.
"Solid population growth is certainly pivotal in driving the stellar gains in house prices," said Craig James, chief equities economist at Commonwealth Bank of Australia. "At the same time, not enough new houses and apartments are being built."
House prices in 20 US metropolitan areas fell 12.7 per cent in February from a year earlier, the biggest drop since S&P/Case-Shiller began tracking the data seven years ago.
UK house prices fell in April from a year earlier, the first annual decline since 1996, Nationwide Building Society said on April 30.
The Reserve Bank of Australia increased its benchmark rate in March for the fourth time in seven months to counter the fastest inflation in almost 17 years and a jobless rate at a 33-year low.
The US Federal Reserve has lowered its benchmark rate seven times since September.
- BLOOMBERG
Email this story
Print this story
- More Articles:
- Next Property Story: On holiday year round
- Property Homepage
