Overall the ABS index, which covers the eight capital cities, increased 1.9% in the quarter which means that prices are up 7.6% over last year. It is also the largest increase since the third quarter of 2010.
In Melbourne prices increased by1.9%, Brisbane saw a 1.2% rise, Perth 0.2%, Hobart 1.4% and Darwin 0.4%. Prices fell in Canberra and Adelaide, down 1.2% and 0.6% respectively.
‘This is the first time since 2010 that the capital city average has shown four consecutive quarters of growth year on year,’ said Robin Ashburn from the ABS.
‘Sydney's rises were broad based in the September quarter, with most areas going up, but prices were mixed in Melbourne, with some areas showing rises and others falls,’ he added.
The ABS confirmed that this will be the last release of the eight capital city house price index which will be replaced with a new index from February 2014 with an improved range of information covering semi detached, apartments and terraced houses, as well as information on the number and median price of residential sales outside of capital cities.
The ABS will also be publishing information on the total value and number of residential dwellings in Australia, which it says will provide a valuable insight into the net worth of Australia's households.
The figures indicate that price trends are being driven by speculation, according Shane Garrett, senior economist at the Housing Industry Association. ‘It is no coincidence that the strongest price growth is occurring in cities where constraints on new land supply are most severe, like Sydney and Perth,’ he explained.
‘At a time when population growth is so strong and demand for new housing is so high, it is vital that unnecessarily onerous restrictions on new home building are removed as a priority,’ he said.
‘Nevertheless, the streak of positive price growth over the last 12 months is likely to boost housing renovations activity and the latest house price figures are welcome in this context,’ he added.
