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Australian Home Prices Jump 1.1% in October as Investor Lending Surges

A supply squeeze and the new first‑home guarantee are fuelling demand.

Overview

  • National values rose at the fastest monthly pace since mid‑2023 in October, with the Cotality index up 1.1% and roughly $54,000 added to prices since rate cuts began.
  • Banks passed the Reserve Bank’s third rate cut through to mortgage holders in October, reinforcing demand at lower price points.
  • Investor activity has intensified, with about 38% of new loans going to investors and credit to landlords growing at the quickest rate in a decade, prompting warnings of possible lending rule tightening.
  • Financial markets now expect the RBA to hold rates this week and see further easing pushed to mid‑next year after inflation firmed, including a 1.2% quarterly rise in new‑home construction costs.
  • Regional and smaller‑capital markets are leading gains—Perth rose 1.9% in October—and annual increases are strongest in places like Albany (+22.2%) and Mildura (+18.7%) as listings track about 18% below average and the 5% deposit guarantee lifts entry‑level demand.