Sydney (Reuters) – Australia's home prices rose for the fourth straight month, reaching record heights in May as another interest rate lowered further expectations, with prices for capital in each state rising.
Cotality’s figures (formerly Corelogic) show that starting in April, national prices have risen by 0.5%, reaching a peak price of $831,288 ($536,015). By comparison, it grew 0.3% last month and increased the annual growth rate to 3.3%.
Darwin's price jumped 1.6%, followed by Perth's 0.7% and Brisbane's 0.6%. Prices in Sydney and Melbourne also gained.
“There is no doubt that the continued momentum we're seeing in almost all markets is fueled by the slowdown — both markets have already happened and there are potential cuts in the coming months,” said Tim Lawless, research director at Cotality.
Lawless said the cuts could raise sentiment for the rest of June and the whole year, while home prices are expected to release a “moderate increase” this year, although recorded in 2024 at a slower pace.
The Reserve Bank of Australia lowered interest rates to a two-year low last month, the second step in the current mitigation cycle after the February cut. This also makes more policy easing, as cooling inflation at home provides a range to cope with global trade risks.
Swaps mean the total easing point in the middle of next year is 85 basis points – about three to four lower.
Strong immigration and tight supply helped Australia's property market end a year-long slide, much earlier than many experts had expected.
“After the federal election and the continued supply of new homes, some confidence in decision-making is other factors that may support further price growth,” Cotality noted.
($1 = AUD 1.5509)
(Reports by Renju Jose and Stella Qiu in Sydney; Editor of Lincoln Feast.)
