Australia home costs surge in August
Home prices in Australia climbed in August, touching the fastest annual rate since 1989. The growth was attributed to COVID-19 restrictions that hit supply, making houses unffordable for many.
National home prices increased 1.5% based on the data released by property consultant CoreLogic on Wednesday.
It soared 20.8% due to a pandemic-driven move to work from home, with values up 18.4 percent from last year, the highest gain since July 1989.
Home values were at A$8.3 trillion ($6.09 trillion), surging A$450 billion in the March quarter, according to the Australian Bureau of Statistics’ projection.
CoreLogic’s research director Tim Lawless said prices climbed 11 times faster than wages in recent years, with the former rising by roughly A$103,400 or A$1,990 per week, compared with an average annual wage growth of only 1.7%.
Home prices in Sydney rose 1.8% in August to a median A$1.04 million, while they were up 1.2% in Melbourne.