Australian National Home Values Rise 0.3 Percent In April

Satterley Property Group CEO Nigel Satterley forecast that the cost of building a new home in Australia will rise by up to $50,000. Builders have reported cost increases for concrete, masonry, and other building materials due to rising fuel prices. The report notes these increases are part of the latest monetary policy savings context. Higher construction costs are expected to reduce total building output during an ongoing rental crisis and high population growth. The resulting tightening of rental markets is identified as a key driver of CPI inflation. These factors are expected to be a concern for the Reserve Bank of Australia. National home values in Australia rose by 0.3% in April, marking the slowest growth pace in 15 months. The national average was impacted by declines in Sydney and Melbourne, where values fell by 0.6% each. Data from Cotality suggests affordability pressures and higher interest rates contributed to the slowdown. Perth led the gains, followed by Darwin, Brisbane, and Adelaide. Economists noted that buyers are becoming more cautious and price sensitive due to affordability pressures and higher interest rates. A surge in home battery installations is also impacting installers ahead of rebate changes starting today.