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Growth in house prices, lending figures

22 May 14

There has been further good news for the national property market as it emerges that not only are property prices increasing, but so is the number of home loan approvals.

Data released by the Australian Bureau of Statistics (ABS) reveals that new properties are in especially high demand at the moment, as approvals for the purchase of these homes increased 1.6 per cent in March.

If you're hoping to secure property in South Australia you might also find there are more properties to choose from, as approvals for the construction of new dwellings increased 2.1 per cent during the month.

These figures came as the ABS also announced the results of its Residential Property Price Index (RPPI), which will also no doubt prove interesting reading to anyone seeking real estate advice.

Adelaide saw its reading increase 0.7 per cent on the index during the first three months of the year, perhaps pointing to more sustainable growth then has been seen elsewhere in the country.

ABS Director of the RPPI Robin Ashburn revealed that for the eight capital cities combined, the index increased 1.7 per cent over the March quarter and 10.9 per cent compared to 2013.

"The rise in prices has contributed to a rise in the total value of residential dwellings to $5.1 trillion in the March quarter 2014," the expert continued.

"The average value of Australia's 9.3 million residential dwellings was $546,500."

Commenting on the data, the Housing Industry Association (HIA) indicated that prices are finally starting to rise at a more sustainable rate than has been seen in the past.

"Combined with the current low interest rate environment, these developments provide favourable conditions for the residential construction sector," said HIA Economist Diwa Hopkins.

She added that sustained growth in house building will be essential to the success of the economy as a whole, so every effort needs to be made to support the sector.

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