property boom


PHOTO: Despite high prices, the vast majority of young Australians still consider homeownership an important priority. picture: Brendan RadkeSource:News Corp Australia

Uncertainty surrounding the national economy has done little to impact the rapidly growing confidence that another property boom is imminent, new data suggests.

Almost 18 months of declines in median house prices in Australia’s two largest markets – Sydney and Melbourne – ended in June after prices fell more than 10 per cent from their peaks.

But consecutive monthly increases in dwelling values since, coupled with exceptionally high auction clearance rates and a lift in home loan approvals paint a picture of a rebound in real estate fortunes.

Data house CoreLogic said the national home value index recorded its third month of growth in September, up 0.9 per cent across all capital cities.

Sydney is up a cumulative 3.3 per cent and Melbourne up 3.2 per cent in August and September.

With spring in full swing, a traditionally busy time in real estate, industry pundits say the storm clouds look to have cleared and a new period of growth is here.