Australian Housing Bubble hits new Heights

The Australian housing bubble, one of the last in the world to pop is bucking world trends to hit new heights.

Today, The Sydney Daily Telegraph reports data from Residex suggesting Sydney’s median house price is now $610,500 in September, up $11,000 for the month after breaking through the $600,000 mark for the first time.

It’s a similar story in Melbourne. According to the Real Estate Institute of Victoria and published by the Age, Melbourne’s median house price has hit a record $480,000 to surpass the heights of the 2007 property boom.

Over in WA, the West Australian reports “An emergency meeting of State Government officials, builders and developers will be held next week amid growing fears a new Perth property boom could price everyday workers out of the metropolitan area, forcing them to commute long distances to the city from rural towns.”

With the International Monetary Fund last month advising central banks including the Reserve Bank of Australia to take pre-emptive action action to control asset price bubbles by raising interest rates, this year’s Melbourne Cup day is almost certain to see a 50 basis point rise.

» Average Sydney house price is $610,000 – The Sunday Telegraph, 25th October 2009.

» Median house price hits $480,000 – The Age, 24th October 2009.

» Fears of housing bubble growing – The West Australian, 24th October 2009.