The Australian Bureau of Statistics released its Residential Property Price Index (RPPI) for the March 2021 quarter. This data includes the House Price Index (HPI) and the Attached Dwellings Price Index (ADPI), and measures the change in price of residential property across Australia’s eight capital cities.
Overall, residential property prices rose 5.4% in the March quarter, the strongest growth since December 2009. The strong gain was driven by increased property prices in all capital cities, with a growth of 6.1% in both Sydney and Hobart. Perth property prices rose by 5.2% and Melbourne by 5.1% during the same period. Over the twelve months ending March 2021, residential property prices increased by 7.5%, as the Australian economy recovers from the COVID-19 crisis. The total value of Australian homes reaches $8 trillion in March 2021. The Australian residential real estate is expected to be four times the size of the Australian GDP. The price of an average residential property increased by $39,100 to $779,000.
The increase in residential property prices is in line with housing market indicators. The historic low cash rate of 0.10, government initiatives, and rising consumer confidence have contributed to growth in residential property prices. The national auction clearance rates and sales transactions hit a 6 year high of 80.9% in the March quarter.
