(fashion) The worst of Australia's housing market downturn appears to be well and truly over with property prices surging in the big cities.
House and apartment prices in Sydney and Melbourne have climbed for the third month in a row, new data from CoreLogic showed.
CoreLogic research director Tim Lawless said record-low interest rates, relaxed lending rules and the re-election of a Coalition government appeared to be working.
'The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low,' he said.
Sydney led the recovery, with median apartment prices surging by 1.8 per cent in August as equivalent house prices rose by 1.5 per cent, CoreLogic data showed (pictured is a Victorian-era cottage at Woollahra in the city's eastern suburbs)
'It's likely that buyer demand and confidence is responding to the positive effect of of a stable federal government, as well as lower interest rates, tax cuts and subtle easing in credit policy.'
Sydney led the recovery, with median apartment prices surging by 1.8 per cent in August as equivalent house prices rose by 1.5 per cent.
Melbourne was also in a strong position, with apartment values climbing by 1.5 per cent as house prices went up by 1.3 per cent.
'While the recovery trend is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities,' Mr Lawless said.
During winter, Australia's capital city property prices rose by one per cent.
Australia's biggest housing markets peaked in 2017 after the Australian Prudential Regulation Authority imposed stricter rules on investor and interest-only loans.
Melbourne was also in a strong position, with apartment values climbing by 1.5 per cent as house prices went up by 1.3 per cent (pictured is a mansion in the inner-east suburb of Toorak)
SYDNEY: houses up 1.5 per cent to $877,220; apartments up 1.8 per cent to $699,126
MELBOURNE: houses up 1.3 per cent