Australian home prices rose a further 1.4 per cent in February to reach fresh record highs, according to one industry measure, underlining why policy makers are concerned about speculative froth in the market.
The Data-Rismark Hedonic Australian Home Value Index rose by 1.4 per cent in February on top of an upwardly revised 2 per cent in January. Home prices are up 12.7 per cent on February last year, the fastest pace in 25 months. This series is based on the largest property database in Australia and is well regarded by analysts.
Data-Rismark calculated the median capital city house price across Australia at an all-time peak of A$548,413 (S$705,423), with the median apartment valued at A$450,619.
Just this week, Reserve Bank of Australia (RBA) governor Glenn Stevens warned against speculation in the property market that was pushing up prices. The revival in prices is one reason the central bank lifted interest rates by 100 basis points since October.
Source: Business Times, 1 Apr 2010