Dwelling prices continue their steady ascent according to the latest ABS data, the Housing Industry Association (HIA) says.
The ABS Residential Property Price Index (RPPI) shows an increase in home prices over the December quarter, up 1.9% from the previous quarter and up 6.8% from the last year. Compared with the same period twelve months earlier, home prices were 6.8% higher.
HIA Senior Economist Shane Garrett said, “Today’s ABS figures show that dwelling price growth is now comfortably sustainable.”
Garrett said the housing industry had been key in bringing price growth ‘onto a more even keel’ and new home commencements topped the record in 2014.
“In inflation-adjusted terms, the rate of home price growth is now around 5% annually,” Garrett said.
“This is exactly the kind of home price growth that prevails over the long term.”
Established house prices rose by seven per cent over 2014 and other types of dwelling increasing by 6.1 per cent.
Garrett said new home building needs to be able to fully contribute to higher affordability and living standards in the economy.
“The current design of taxation in the residential construction sector is not consistent with this goal,” he said.
“We need to see greater urgency in terms of easing the tax burden on new housing, and we look forward to potential remedies being included in the forthcoming Tax White Paper.”
