House prices have risen by an enormous 9.2% in the capital cities over the last years, according to the Australian Bureau of Statistics.
The 3.2% rise in the June quarter, up from the more modest 1.4% increase in March, is the fastest pace of growth in the last 12 months.
Brisbane experienced the biggest increase, with prices rising by 6.5%, closely followed by Adelaide at 5.7% and Melbourne at 5%.
In Sydney, house prices grew at their fastest pace since the tail end of the housing boom in late 2003, rising 2.3% in the three months to June. Prices were also up by 2.3% in Hobart and 2.9% in Canberra.
The news was not as good for homeowners in Perth and Darwin however, with prices falling by 0.9% and 1.4% respectively.
While some economists and analysts speculated that the interest rate rise may weaken house price growth in the near future, others said the economy was simply too strong for this to be a realistic concern.
Grange Securities chief economist Stephen Roberts said the figures released today suggest the demand side of housing was strong, and the current activity in the housing market is simply “a bit of rotation”.
He added that while Perth may have slipped in this quarter, it was still up by more than 15% year-on-year.
“All told, these figures suggest the demand side of housing is in pretty good shape,” he said.
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