The biggest growth was seen in Melbourne and Sydney, which posted an increase in home values by 2.3% and 0.8% for September alone, respectively. This brings Melbourne’s gains for the third quarter to 5%, while Sydney’s is at 3.5%.
However, huge variations were seen in other capital cities. Both Canberra and Adelaide posted decent gains, but prices fell in Brisbane, Perth, and Darwin. Dwelling values in Darwin, in particular, declined by 4.5% - roughly equivalent to home prices seven years ago.
The sustained house price growth follows the rate cuts from the Reserve Bank of Australia in May and August, which took borrowing costs to a new historic low of 1.5%. It is also supported by high auction clearance rates, which are now at their strongest levels since the June 2015 quarter.