According to a new report, the prices of houses in major cities in Australia have risen 1.6 percent during the previous quarter as urban dwellers benefitted from lower interest rates.
The median price of houses in Australia's most expensive city, Sydney rose 2.4 percent in the three months to August to the level of A$ 530,000. The prices of homes in Melbourne rose 2.5 percent during the quarter. Prices of houses in Darwin rose to the level of $497,000.
The Reserve Bank of Australia had reduced its cash rate to 3.5 percent in June, which is its lowest level in December 2009. The housing market in the country is deeply influenced by interest rates as about a third of homes have home loans. The total mortgage debt is about A$ 1.2 trillion, which is higher than household disposable income in the country.
The latest data showed that average dwelling values in Australia's capital cities largely flat during the month of August. Experts fear that a slowdown in the mining sector in the country could impact the housing market negatively, especially in the states where mining is a major economic activity.