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National house price growth returns to single figures

National house price growth returns to single figures

by Staff Reporter 0 comments

Expanding housing supply has been credited with reducing property prices to one-year lows.

Residential property values in Australia's eight capital cities grew by 9.1 per cent for the 12 months to 30 September 2014, according to new data from the Australian Bureau of Statistics.

Sydney led the way with 14.6 per cent growth, followed by Melbourne with 6.9 per cent, Brisbane with 6.7 per cent and Adelaide with 5.6 per cent.

Hobart grew 4.3 per cent, Perth 3.7 per cent, Darwin 3.4 per cent and Canberra 2.4 per cent.

Housing Industry Association senior economist Shane Garrett said price growth is easing to a much more sustainable rate.

"The annual rate of home price growth nationally is back in single figures for the first time in a year," he said.

"At the same time, new home building is stretching to its busiest year in two decades. This is no coincidence."

However, Mr Garrett warned that housing capacity is "bursting at the seams", which could lead to more strong price growth in the future.

"Any home builder will tell you of the difficulties in sourcing crucial trades like bricklayers, at a time when training budgets in the industry are being slashed by government," he said.

"The situation around residential land supply is also stifling new home building. It is important that federal and state governments ease the bureaucracy around the release and development of land for new housing."

National house price growth returns to single figures
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