Property prices in Australian major cities recorded a surge in July, led by the city of Melbourne where property values rose by 3.1 per cent over the month.
The index of property prices for the combined capital cities compiled by property consultant CoreLogic rose by 1.5 per cent in July, compared with 0.8 per cent in June.
Regulators have attempted to cool the real estate market by introducing tighter rules on leveraged property investors, but the latest figures imply that the measures have not worked.
Annual property price growth Australian major cities accelerated to 10.5 per cent, from 9.6 per cent, heading back towards the peak of 12.9 per cent reached early in the year.
Melbourne was the top performing city, with the 3.1 per cent monthly increase lifting the annual price growth rate to a huge 15.9 per cent.
Sydney was another Australian city showing solid growth, with a 1.4 per cent monthly increase boosting the annual rise to 12.4 per cent.
Other Australian cities saw more mixed fortunes, with property prices actually falling in Brisbane, Darwin and Perth.
Tim Lawless, CoreLogic head of research, commented: ‘Melbourne appears to be benefiting from consistently high population growth which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney.’
However, Mr Lawless also pointed out that the overall quarterly growth in property prices had slowed from 3.6 per cent in February, down to 2.2 per cent in the latest figures.
The Reserve Bank of Australia (RBA) has tightened lending rules on investment and interest-only loans in an attempt to moderate the real estate market, but it seems that certain cities remain unaffected.
Overseas property investors considering Australian property should research carefully to ensure that they invest in an area with growth potential.
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