House Price Surge Fuels Bubble Fears

abc.net.au
Capital city house prices have surged in the three months to June, with Australia's two biggest cities leading the gains.

The average weighted gain in established house prices across the eight capitals was 4.2 per cent, which was largely driven by a 5.2 per cent gain in Melbourne and a 4.9 per cent spike in Sydney, according to the official statistics.

Louis Christopher, a housing analyst and managing director at SQM research, says the price rise is the biggest in six years.

"The bounce was huge, it was a national rise of 4.2 per cent just for the quarter, and really that's been the biggest rise we've had in house prices since 2003, so quite a significant uplift," he said..

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