AUSTRALIA’S housing market defied lockdowns in the nation’s two biggest cities to post a 1.5 percent rise in prices in August, even as the growth rate continued to steadily slow from its March peak.

Housing values in the country are up 15.8 percent this year, and 18.4 percent higher than 12 months ago, in contrast with the average annual wage growth of just 1.7 percent, according to CoreLogic Inc. data released yesterday.

“Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don’t yet own a home,” according to Tim Lawless, research director at CoreLogic.

While lockdowns are affecting consumer sentiment, they have had a bigger impact on the number of listings and properties sold than the price, he said. Price growth has been coming off since a 2.8 percent rise in March.

In the rental market, Australia’s closed borders are crimping growth on apartment prices, which have risen less than half as much as housing rents. The trend is most pronounced in Melbourne and Sydney, the data show.

“The weaker trend in unit rents across Australia’s two largest cities is likely a reflection of their greater exposure to temporary overseas migrants as a source of rental tenancy, especially foreign students who would normally underpin inner city high-rise rental demand,” Lawless said in a research note yesterday.

Still, rents are up 8.2 percent over the 12 months ending August, the largest rise since 2008. (SD-Agencies)