Australian house price growth slows in september

Australian house price growth slowed in the three months to September 2013, according to new figures from ABS.

The latest index shows that capital city establish property prices increased 1.9 per cent during the third quarter of 2013 compared to the previous quarter, as the pace of growth eased. Annual increases are now at 7.6 per cent.

“The fact that house price growth was at a modest pace during the September quarter undermines recent assertions that price trends in the market are being driven by speculation,” noted Shane Garrett.

“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. 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.”