In Australia, home prices increased by 3.7 percent in the three months up to September, based on a study done by the Australian Property Monitors (APM).
In the study, the highest price increase was seen in Melbourne with a 6.1 percent rise in prices of average-sized homes. Adelaide and Sydney saw price rises of 3.3 percent and 3.6 percent respectively, while the capital Canberra jumped 4.8 percent.
The figures showed the highest surge of house prices in Australia in the last six years, particularly for the average-sized homes group. At the national level, a 7.1 percent price increase was reported.
"The extraordinary recovery at the upper end of the market experienced in June in most major capitals has now spread to the rest of the country. Another quarter of improving employment results and the share market rising by 20 per cent has meant that buyers are stepping into the oversold top end of the market to purchase properties at prices still below their late 2007 highs,” said Matthew Bell, an economist at APM.
According to top economists, the sharp growth in house prices is most likely a direct result of the high interest of the public in the housing sector’s luxury end. The figures are still expected to increase in the future, as markets continue to show signs of stable recovery from the damage caused by the global recession.