Australian property prices surged 22pc last year, its biggest jump since the 1980s

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Record low interest rates have driven Australian housing prices up 22 per cent last year — its sharpest rise in three decades.

The nation’s median property price has risen for a 15th straight month. It comes after another 1 per cent gain in December, according to the latest figures from CoreLogic.

But prices have been rising at a slower pace each month, as property became increasingly unaffordable for first-home buyers.

Last month, Australia’s median price rose by 1 per cent to $709,803.

Sydney had a small increase, by 0.3 per cent, while prices in Melbourne fell by 0.1 per cent in December.

“A surge in freshly advertised listings through December has been a key factor in taking some heat out of the Melbourne and Sydney housing markets,” CoreLogic’s research director Tim Lawless said.

Prices in Australia’s two most expensive capitals were also affected by “demand headwinds caused by significant affordability constraints and negative interstate migration,” he added.

While the pace of capital gains has been easing in Sydney, Melbourne and Perth, prices in other capital cities have lifted sharply.

Prices in Brisbane and Adelaide went up by 2.9 per and 2.6 per cent in December, showing a two-speed market emerging across capital cities.

For the second year in a row, prices in regional areas went up at a much faster rate, compared to the capital cities.

Since March 2020, housing values across regional Australia were up 32 per cent, compared to a 20 per cent lift in values seen across the combined capitals.

By business reporter Samuel Yang (Original ABC Article)