Australia’s housing boom is one among the fastest growing within the world, a replacement report has revealed, because the country recorded its highest rate of annual price growth in decades Australia ranked seventh out of 55 countries for annual price growth, at 16.4 per cent for the year ending June, the fastest annual pace since 2003, Knight Frank’s Global House price level for the second quarter of 2021 found.
It is up from the previous quarter, when it ranked 18th with 8.3 per cent annual growth, and up from the past year, when it ranked 19th with 6.1 per cent annual growth While some markets have shown signs of softening demand, the index said recent tighter COVID restrictions in Australia “may yet spark renewed activity as lockdowns shine a light-weight on homes and lifestyles”.
It comes because the index is now rising at its fastest rate since the primary quarter of 2005, with quite a 3rd of housing markets (18 countries) registering price increases of 10 per cent or more within the year ending June Knight Frank head of residential research Michelle Ciesielski said there have been more buyers than there have been homes, driving up the housing market in Australia.
“Scarcity remains the key driver for the many growth in residential values across Australia, with pent-up demand from those engaging in an incredibly low interest-rate environment,” Ms Ciesielski said.
