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House prices rise, approvals at new record

·2-min read

House prices continued to surge across the nation in May with values up by more than one per cent in every capital city.

The CoreLogic home value index rose 2.2 per cent in May, just shy of a staggering 2.8 per cent surge in March.

The index now stand 10.6 per cent higher than a year ago.

Building approvals for new private sector houses also rose by a further 4.6 per cent in April to 15,063 - a new record high - the Australian Bureau of Statistics said.

"Since the introduction of HomeBuilder in June 2020, private house approvals have risen 84 per cent," ABS officer Daniel Rossi said.

CoreLogic research director Tim Lawless said home price growth spanned geography and housing types.

"Such a synchronised upswing is an absolute rarity across Australia's diverse array of housing markets," he said.

Across the capital cities, the monthly change in dwelling values ranged from a 1.1 per cent rise in Perth through to a 3.2 per cent jump in Hobart.

Across the non-capital city regions, conditions were more diverse with regional NSW leading monthly gains, up 2.5 per cent, while values in regional Western Australia had the weakest result, down 0.1 per cent.

Mr Lawless said the combination of improving economic conditions and low interest rates was continuing to support consumer confidence, which in turn created persistently strong demand for housing.

"At the same time, advertised supply remains well below average," he said.

"This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices."

The ABS data showed while approvals for private detached houses remained strong, the more volatile "approvals excluding houses" component tumbled 28.6 per cent.

As such, overall building approvals fell 8.6 per cent to 21,482 for the month.

CORELOGIC NATIONAL HOME VALUE INDEX FOR MAY

(month, annual)

National - up 2.2 per cent per cent, up 10.6 per cent

Sydney - up 3.0 per cent, up 11.2 per cent

Melbourne - up 1.8 per cent, up 5.0 per cent

Brisbane - up 2.0 per cent, up 10.6 per cent

Adelaide - up 1.9 per cent, up 11.8 per cent

Perth - up 1.1 per cent, up 8.5 per cent

Hobart - up 3.2 per cent, up 16.5 per cent

Darwin - up 2.7 per cent, up 20.3 per cent

Canberra - up 1.7 per cent, up 15.6 per cent

Combined capitals - up 2.3 per cent, up 9.4 per cent

Combined regional - up 2.0 per cent, up 15.2 per cent

(Source: CoreLogic)

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