Photographer: Brendon Thorne/Bloomberg

Sydney, Melbourne House Prices Rise to Record as Perth Falls

  • Growth defies calls Australia housing boom has passed its peak
  • Median house price in Sydney climbs to A$1.068 million

Sydney and Melbourne house prices rose to a record last quarter, suggesting the nation’s property boom isn’t over yet.

The median house price in Sydney, the nation’s biggest city, rose 2.7 percent in the three months ended Sept. 30 to A$1.068 million ($822,000), real-estate listing firm Domain said in its quarterly house price report. Melbourne’s median house price jumped 3.1 percent to a record A$773,669.

The jump in prices defies calls the nation’s property boom has peaked, and may pile pressure on the government to take steps to address housing affordability amid increasing concern young people and first-time home buyers are being locked out of the market. Dwelling values in Sydney have almost doubled since the end of 2008, according to CoreLogic Inc.

Prices in Perth, which has been rocked by the end of the mining boom, fell to the lowest in more than three years, Domain said. Median house prices in the city declined 2 percent to A$566,609. Brisbane, Adelaide and Darwin house prices also went backwards last quarter.

Nationally, median house prices rose 1.7 percent last quarter, and are 3.5 percent higher than a year ago.

Treasurer Scott Morrison on Monday urged state governments to free up land releases and simplify planning regulations to increase the supply of new housing.

QBE Insurance Group Ltd. earlier this month said Sydney’s housing boom is coming to an end, as curbs on investor lending and a raft of new developments combine to depress prices. Morgan Stanley also said Australia’s housing boom has passed its peak, with a looming apartment glut set to lead to a sharp slowdown in future developments.

— With assistance by Kimberley Painter

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