The Australian property market continues its recovery, recording its largest monthly increase in more than two years as Australians capitalise on low interest rates, tax cuts and a slight loosening in lending standards.
The national property market rose by 0.8 per cent in August as the recovery continues from the downturn seen over the last two years, not helped by tax sanctions against overseas property investors.
Sydney had been at the centre of the downturn, but the New South Wales capital appears to be once again on the rise.
It was the best performing capital city in the three months to August, with its median price rising 1.9 per cent according to new Corelogic data.
Melbourne’s recovery is also in full swing with a quarterly rise of 1.8 per cent although both major cities are still more than 6 per cent lower year-on-year.
Hobart was the only other capital to lift over the three months, rising 1 per cent, while Perth led the losses, falling 1.8 per cent, followed by Darwin, down 1.7 per cent.
Corelogic research director Tim Lawless commented: ‘The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low.’
He continued: ‘It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy.’
The Australian property market had been showing signs of turning around, with improving rates of decline and a more modest recovery trend recently, but August appears to have seen that recovery accelerate further than expected.
August marks the third successive month of capital gain in Sydney, Melbourne and Hobart as well as the second successive month of increases in Brisbane as the recovery takes hold.
It seems that the Australian property market may be back in business.