House prices in capital cities in Australia increased by 2.4% in the second quarter of 2013, taking the annual growth to 5.1% and values to a new all time high. The latest update to the Australian Bureau of Statistics House Price Index shows that house prices increased by 2.7% in Sydney, by 2.4% in Melbourne, by 1.9% in Brisbane, by 0.3% in Adelaide, by 3.4% in Perth, by 2.9% in Darwin and by 1% in Canberra although the index fell by 1% in Hobart.

The new house price index increased by 0.7% in Sydney and in Melbourne, 2% in Brisbane, 0.2% in Adelaide, 1.5% in Perth, 0.5% in Hobart and by 1.3% in Darwin although the index fell by 0.2% in Canberra. ‘It’s also worth noting these latest improvements follow results that have turned out to better than initially estimated. The ABS revised upwards annual established house price growth in the December and March quarters of 2013,’ said Diwa Hopkins, Housing Industry Association economist.

‘These price developments signal increased activity in the housing market, with lower interest rates an obvious contributor. Another likely contributor is improved confidence. While still delicately poised, confidence has mainly tracked higher in financial year 2012/13. This compares with the previous year when pessimism was quite entrenched,’ she explained.

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