Australian property

PHOTO: Australian Property

Property prices rose at a breakneck pace in November as record-low interest rates and looser lending standards fuelled demand in a sector that has gone from bust to boom since mid-year.

It was the fifth straight month of gains and a potential boon for consumer spending power after a two-year downturn chipped away at household wealth and confidence.

The sector has been the clearest winner from the Reserve Bank of Australia’s easing campaign, having cut rates three times since June to a historic low of 0.75 per cent.

The central bank holds its December policy meeting on Tuesday and is widely expected to hold steady as it gauges the full impact of its past stimulus.

Monday’s data from property consultant CoreLogic showed home prices across the country rose 1.7 per cent in November from October, when they climbed 1.2 per cent.

It was the largest monthly gain since 2003.

Prices were up 0.1 per cent on a year ago, the first positive reading since April of last year.

Values across the state and territorial capital cities rose 2.0 per cent in November, led by a 2.7 per cent surge in Sydney and a 2.2 per cent jump in Melbourne.

Prices in the combined capitals were up 0.4 per cent on a year earlier, with Sydney rising 1.6 per cent and Melbourne 2.2 per cent.

That was a world away from the double-digit pace of declines experienced earlier this year.