Housing prices are rising at record levels in Australian state capitals as interest rates are very low and real estate shortages are evident as well.
Six cities saw record price hikes for the third quarter in a row, according to a report by the real estate site Domain.
It also said that Sydney, Canberra, Hobart and Darwin saw the prices increase by more than 20% last year.
Unsustainable Price Rise
Experts warn that the increase is “unsustainable” as the property become impossible to afford for many.
The Domain House Price Report highlighted a “storm” of low-cost borrowing costs, the small number of real estate properties for sale, strong demand, and government incentives in the midst of the pandemic.
Sydney, Australia’s most populous city, saw a record price of $ 1,410,133 ($ 1.04m; £ 747,215) after rising more than A $ 1,200 a day in the past three months.
What Else Did The Survey Found?
Meanwhile, the Australian capital Canberra has seen housing price increase by about 30% over the past 12 months, with Hobart prices in Tasmania exceeding 28% over the same period.
The study also revealed that it would make the property less affordable for first-time home buyers.
The report is in line with many economists’ perceptions that the rise will not be sustainable.
Unusual Rate Of Growth
“This is a very unusual rate of growth. Unusual circumstances create extraordinary outcomes,” chief of research and economics Nicola Powell said.
Last month, official figures showed that the Australian economy continued to explode at a much faster rate, to grow faster than even before the Covid-19 pandemic.
