Australian Home Prices Surge: Demand Outstrips Supply

Australian home prices increased in August by 0.7%, driven by strong buyer demand and limited advertised stock. Brisbane saw the highest rise at 1.2%, while Sydney increased by 0.8% and Melbourne by 0.3%. The trend is fueled by a boost in borrowing capacity and national monetary policy.

In August, Australian home prices witnessed a significant 0.7% rise, propelled by heightened buyer demand and constrained advertised stock, according to property consultant Cotality.

The increase represents the strongest monthly gain since May 2024. Notably, Brisbane experienced a 1.2% price surge, while Sydney and Melbourne saw hikes of 0.8% and 0.3%, respectively.

The trend is underpinned by factors such as expanding borrowing capacity, real wages growth, and a tightening housing market leading to increased urgency among buyers, as indicated by Cotality's data.

(With inputs from agencies.)