Australian house prices climb in June

By Australian Property News, 16 July 2009

National house prices rose 0.7 per cent in June after a 2.1 per cent climb in May, according to Residex data.

This figure is just 0.5 per cent down from the peak in May 2008 and with no stabilisation in sight, said Residex senior economist Matthew Hassan.

Units have outperformed houses with an overall increase in the year to June of 3.4 per cent, and with Sydney and Melbourne ahead in the stakes showing increases of 11.4 per cent and 11.5 per cent respectively.

Hassan said this return to price growth would only add momentum to the upturn, which appeared to be attracting more interest from upgraders and investors. He said it also signals a return to property wealth building and consumer demand.

"How well this is sustained through the inevitable wind down in first homebuyer demand remains critical, but the strengthening and broadening in the upturn now coming through suggests housing markets are well-placed," he said.

Australian Property Investor magazine editor Eynas Brodie said the Residex data confirmed what other data recently released by another research house showed – that property prices were on the road to recovery.