SYDNEY (July 1): Australian home prices grew at their fastest annual pace since 2004 in June as strong demand and tight supply outweighed the drag from coronavirus lockdowns in some cities, reported Reuters.

According to the report, quoting property consultant CoreLogic’s data, Australia’s home prices uptrend continued in June, with an increase of 1.9%, after recording a jump of 2.2% in May.

It also highlighted that prices were up 13.5% on last year, with houses surging 15.6% amid a pandemic-driven shift to working from home.

Data showed that Sydney (pictured) prices gained another 2.6%, to be up 15.0% on a year ago, while Brisbane added 1.9% and Adelaide 1.6%. Melbourne rose 1.5% even though the city was locked down for much of June.

CoreLogic Head of Research for Australia Eliza Owen told the newswire that this is the highest annual rate of growth seen across the Australian residential property market since April 2004, when the early 2000's housing boom was winding down.

However, she noted that there were some early signs of a cool down at the top end of the market, where price growth slowed for the first time in nine months.

The report said record low borrowing rates and the government’s "HomeBuilder" incentive have pushed up housing demand. Earlier news reports said the Reserve Bank of Australia (RBA) had reiterated the rates were likely to remain at a historic low of 0.1% until at least 2024.

Data from the Australian Bureau of Statistics (ABS) showed approvals to build private houses surged 67.4% in April from a year ago while total dwelling approvals increased nearly 40%.

ABS anticipated the value of homes to climb to a record A$450 billion (RM1.4 trillion) in March to A$8.3 trillion. The average home in New South Wales also topped AU$1 million for the first time ever,” it said.

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