House prices in the Australian cities of Melbourne and Sydney rose at the fastest rate in February for nearly seven years.
Capital city house prices have grown at their strongest annual rate in almost seven years after interest rate cuts and investor demand lit a fire under property values in Sydney and Melbourne, according to
Analytics firm CoreLogic believes that the rise is down to interest rate cuts and demand from investors. According to CoreLogic, property prices in Sydney rose by 2.6% last month, while prices in Melbourne grew by 1.5% during the same period.
“Growth conditions have been rebounding since the middle of last year when, on two separate occasions, interest rates were cut, and investor demand commenced trending higher,” commented Tim Lawless, head of research at CoreLogic. “Prior to capital gains accelerating halfway through last year, the growth trend had been moderating, reaching a cyclical low point over the twelve months ended July 2016 when the annual change in capital city dwelling values slowed to 6.1 per cent.”
Property prices in the two cities have been growing every month since June 2012 according to CoreLogic, increasing in value by total of 47.3%. however, prices in Perth, Darwin and Brisbane fell in February, with the Northern Territory and Western Australia recording year-on-year value declines of 0.6 and 0.8%.