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Australia Housing Prices Rise Amidst Rate Hike Fears
2 Mar
Summary
- Housing prices in Australian mid-sized capitals increased in February.
- Sydney and Melbourne housing prices remained stagnant.
- The Reserve Bank of Australia increased interest rates last month.
Australia's housing market demonstrated resilience in February, with prices seeing an uptick. This growth was particularly strong in mid-sized capitals such as Perth and Brisbane, which recorded notable gains. These increases occurred despite a recent 25 basis point interest rate hike by the Reserve Bank of Australia in the previous month.
In contrast, the major markets of Sydney and Melbourne experienced stagnant housing prices in February. Research director Tim Lawless of Cotality noted this divergence, suggesting it might foreshadow easing growth conditions in other areas over time. He also indicated that vendors in Sydney and Melbourne are showing increased willingness to sell.
The Reserve Bank of Australia's decision to raise interest rates to 3.85% followed a re-acceleration of inflation. The central bank had previously implemented three rate cuts in the preceding year. The nation's financial conditions, characterized by property price booms, were cited as a contributing factor to the rate adjustment.
