Signs of life in Australia’s real estate market are helping to increase consumer confidence, Housing Industry Association (HIA) chief economist Dr Harley Dale has said.
The number of established dwelling approvals rose by 4.2 per cent in the June quarter, following four quarters of decline.
“We’re certainly not talking about a strong result here. But evidence of moderate growth flies in the face of incessant talk earlier in the year that house prices would drop into free-fall. Clearly, and predictably, that has not been the case,” Mr Dale said.
“The fact that house prices have held up is an important factor in Australia dodging the massive economic fall-out evident in the United States and the United Kingdom.”
The capital city established house price index rose in the June 2009 quarter by 4.9 per cent in Sydney, 5.2 per cent in Melbourne, 2.5 per cent in Brisbane, 3.4 per cent in Adelaide, 2.7 per cent in Perth, 2.5 per cent in Hobart, 2.4 per cent in Darwin, and 3.6 per cent in Canberra.
The weighted average index for project homes across Australia’s eight capital cities increased by 1.5 per cent over the June 2009 quarter to be up 2.6 per cent.