Australia’s housing market momentum accelerated in August as demand from a growing population swamped new supply and outweighed the impact of the Reserve Bank of Australia’s (RBA) aggressive policy tightening campaign.
Australian capital-city house prices rose +1.0% in August 2023, marking a marginal acceleration relative to the month prior. In levels terms, capital-city prices are now 6.0% above their recent trough and only -4.3% below their peak in early 2022. That said, rental growth looks to be decelerating. Key numbers: CoreLogic Capital City Dwelling Prices (8-city), August: +1.0% month on month (mom), +3.1% quarter on quarter, -0.1% year on year (yoy).
Regionally, price growth accelerated in Sydney (+1.1% mom), Brisbane (+1.5% mom) and Melbourne (+0.5% mom), but eased in Perth and Adelaide.
On sales activity, CoreLogic highlighted that “lower than average advertised supply levels remain a key factor supporting upward pressure on home values. Although the flow of new listings has lifted through winter, total advertised supply levels remain 15.5% lower than a year ago across the combined capitals.”
On the rental market, CoreLogic noted national rental growth eased to +0.5% mom in August from +0.6% mom in July, marking the smallest increase since November 2020. That said, annual rent growth remained elevated at +9.0% yoy.
Source: CoreLogic, Goldman Sachs
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