With interest rate cuts and supply shortages pushing up prices, Melbourne’s housing market has driven the biggest monthly rise in house prices in 16 years. CoreLogic’s monthly house price index shows that house prices in the nation’s capital cities increased by 1.7% in November, the largest monthly increase since 2003.
Melbourne is not far behind, with detached house prices rising 2.4%, with a median price of 774,023 yuan. The price of detached houses in Melbourne rose by 23,000 yuan in November, and this year’s increase has reached 2.9%. It was also the fastest month for house prices in Melbourne to rise since May 2015. Melbourne’s housing market turned positive.
CoreLogic head Tim Lawless said the housing market has responded to a number of factors, including low interest rates and the end of tax uncertainty during the election. “The Reserve Bank’s 75-point interest rate cut, APRA’s easing of lending benchmarks, and the elimination of tax uncertainty surrounding the federal election have played a significant role in the recovery of the housing market,” he said. “In addition, we have seen the number of listed properties remain low. The rising demand from buyers has created a sense of urgency in the market. It is expected that further downward interest rates and improved housing affordability are other supporting factors. “
