Australian Home Prices Accelerate, Defying Interest-Rate Squeeze

  • Perth best performer in February, up 1.8%; Sydney rises 0.5%
  • Limited supply, migration, rate cut expectations drive demand

Houses in Sydney, Australia. 

Photographer: Jenny Evans/Getty Images
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Australian home prices accelerated in February, extending gains at a time of elevated interest rates, reflecting a spike in population growth and a dearth of new housing construction.

Sydney climbed 0.5% last month while Melbourne nudged up 0.1%, resulting in an overall increase of 0.6% for Australia’s major cities, property consultancy CoreLogic Inc. said in a report on Friday. The two fastest-growing markets were mining-powerhouse Perth as well as Adelaide, which advanced 1.8% and 1.1%, respectively.