Australia house prices rise but growth slows in Sydney and Melbourne

Australian home prices jumped in November but gains in Sydney and Melbourne slowed, as expectations there would be no interest rate cuts anytime soon undermined sentiment in those already expensive markets, property consultant Cotality said on Monday.



Home prices nationwide increased 1% in November from October to a median value of A$888,941 ($581,990), slightly slower than the 1.1% gain the previous month, according to figures from Cotality, formerly CoreLogic. Prices have risen 7.5% this year.



The rise was driven by smaller state capitals, with Perth surging 2.4% in the month and Adelaide up 1.9%. Prices in Sydney, Australia's most populous city, rose 0.5%, while in Melbourne they were just 0.3% higher.



The Reserve Bank of Australia has cut interest rates three times this year but an unexpectedly hot inflation report for the third quarter reduced the prospects for any further policy easing. Swaps implied a 50-50 chance of a rate hike at the end of 2026.