SYDNEY - Australian suburbs are experiencing substantial property price gains, with Sydney leading the charge, despite the Reserve Bank of Australia's (RBA) interest rate reaching 4.35%. CoreLogic's latest data reveals that robust population growth, fueled by international students and migrants, is a significant factor behind this trend.
Eliza Owen from the CoreLogic research team noted that certain Sydney suburbs have seen remarkable yearly increases in property values. Thornleigh recorded a surge of up to 19.7% over the past year, including a 3.3% growth in the last quarter alone. Strathfield also witnessed a similar annual rise, and Five Dock enjoyed an 8.4% uptick.
These figures reflect Sydney's appeal to overseas newcomers, with the median house price in the city now at $1.397 million. This attractiveness is not just limited to Sydney; other cities are also seeing notable growth due to the influx of migrants. For instance, Melbourne's Macgregor suburb has experienced an annual rise of up to 19.7%.
In Perth, the suburb of Yokine has enjoyed a significant annual increase of 17.3%, while Adelaide’s Taperoo has risen by 12.7%. This growth comes at a time when Australia's inflation rate stands at a high of 5.4%, surpassing most OECD countries except New Zealand.
The Treasury is closely monitoring these developments and anticipates that migration could exceed its initial estimate of 315,000 for the fiscal year, potentially adding further pressure to the housing market as demand continues to outstrip supply in key urban centers across Australia.
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