Dec 1 (Reuters) – Australian home prices rose in November with large gains in several state capitals, amid a record level of housing unaffordability, property consultant Cotality said on Monday. Prices increased 1% in November from October to a median value of A$888,941 ($581,989.67), after a 1.1% gain the previous month, according to figures from […]
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Australia house prices climb in November amid record unaffordability, Cotality says
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Dec 1 (Reuters) – Australian home prices rose in November with large gains in several state capitals, amid a record level of housing unaffordability, property consultant Cotality said on Monday.
Prices increased 1% in November from October to a median value of A$888,941 ($581,989.67), after a 1.1% gain the previous month, according to figures from Cotality, formerly CoreLogic.
The rise was broad-based, with prices in Perth jumping 2.4% in the month. Prices in Sydney, Australia’s most populous city, rose 0.5%, while in Melbourne they were 0.3% higher.
Cotality’s research director, Tim Lawless, said price growth was strongest in mid-sized capitals and “especially evident in Perth, where listings are holding more than 40% below average, buyer demand is elevated”.
Weighing on growth, Cotality said, was the highest-ever housing unaffordability in Australia, pointing to a record high national dwelling value to household income ratio.
“With housing affordability already stretched and worsening, it stands to reason that fewer borrowers will be able to access credit as serviceability barriers become more prominent,” Lawless said.
Prime Minister Anthony Albanese’s centre-left Labor government has pledged to build 1.2 million homes by 2030 to help ease cost pressures in Australia, where many are dissatisfied with the availability of affordable housing.
($1 = 1.5274 Australian dollars)
(Reporting by Sam McKeith in Sydney; Editing by Michael Perry)