The Australian Bureau of Statistics has released their quarterly update to its House Price Index today, showing Australian houses surged an unsustainable 20.0 percent across the eight capital cities in the year to March. This was the largest yearly increase since this index was first created.
Melbourne lead the race to exuberance with a 27.7 percent gain for the year, followed by Sydney with a 21 percent gain. Foreigners such as Chinese and Koreans prefer the high rise atmosphere these two cities provide. But even cities without high rise Chinese demand had spectacular gains, with Adelaide lagging the back of the pack and just scraping in double digit rises of 10.8 percent.
The Reserve Bank of Australia meets tomorrow, and is almost certain to act on this news, raising the Official Cash Rate.
» 6416.0 – House Price Indexes: Eight Capital Cities, Mar 2010 – The Australian Bureau of Statistics, 3rd May 2010.