Australian house prices are likely to keep surging with the nation's most powerful banker signalling he won't do anything to stop the market from overheating. Capital city property values soared by a record 6.7 per cent during the June quarter, the biggest three-month jump on record since the Australian Bureau of Statistics began compiling data in 2003. Canberra prices climbed by an even more dramatic 8.2 per cent as Sydney values rose by 8.1 per cent. Despite the lockdowns, Sydney's real estate values have kept rising, with median house prices edging up by 1.9 per cent in August to $1.293million, CoreLogic data showed. Australian house prices are likely to keep surging with the nation's most powerful banker signalling he won't do anything to stop the market from overheating. Capital city property values soared by a record 6.7 per cent during the June quarter (pictured is a house at Newport on Sydney's Northern Beaches) The Reserve Bank of Australia has previously increased interest rates to stop the housing market from overheating. Financial markets have been speculating the cash rate, now at a record low of 0.1 per cent, will increase in 2022 or 2023, instead of 2024. But RBA governor Philip Lowe on Tuesday insisted the central bank would do nothing on monetary policy, as the Delta strain of Covid looked set to cause a steep plunge in economic activity. 'Finally, I would like to address the question of housing prices, as some analysts have suggested we might lift the cash rate to cool the property market,' he said. 'I want to be clear that this is not on our agenda. 'While it is true that higher interest rates would, all else equal, see lower housing prices, they would also mean fewer jobs and lower wages growth. Financial markets have been speculating the cash rate, now at a record low of 0.1 per cent, will increase in 2022 or 2023, instead of 2024. But Reserve Bank governor Philip Lowe on Tuesday insisted the central bank would do nothing on monetary policy, as the Delta strain of Covid looked set to cause a steep plunge in economic activity Australia's tight rental vacancy rates Sydney: 2.6 per cent Melbourne: 3.5 per cent Brisbane: 1.3 per cent Perth: 0.7 per cent Adelaide: 0.6 per cent Canberra: 0.8 per cent Darwin: 0.7 per cent Hobart: 0.5 per cent Source: SQM Research, August 2021 Advertisement 'This is a poor trade-off in the current circumstances.' Renters are having a hard time too with Australia's national rental vacancy rate plunging to just 1.6 per cent in August, making it the tightest market since March 2011, SQM Research data revealed. SQM Research managing director Louis Christopher said the exodus of people from Sydney and Melbourne to regional areas has seen demand surge for rental properties in areas by the beach. 'There are strong signs the current lockdowns are creating another wave on interest in regional property,' he said. On the New South Wales North Coast, stretching from north of Grafton to Tweed Heads on the Queensland border, weekly house rents climbed by 4.2 per cent in just one month to $631. This is cheaper than Sydney's $701.50 but dearer than Melbourne's $519.30 and Brisbane's $526.50. Regional areas close to capital cities are in demand with Blue Mountains house rents climbing by 6.7 per cent in a month to $510 a week. The Mornington Peninsula, south-east of Melbourne, saw an 8.2 per cent monthly increase to $489. With Sydney, Melbourne and Canberra now in lockdown, Dr Lowe told the Anika Foundation on adolescent depression and suicide the restrictions were taking a mental health toll on the young. Regional areas close to capital cities are in demand with Mornington Peninsula, south-east of Melbourne, saw an 8.2 per cent monthly increase to $489 a week (pictured is a house at Blairgowrie) 'So, our young people are paying a heavy price,' he said. 'This is evident in the increasing incidence of mental health issues and the sharp rise in calls to support services. 'It is important that we remember this high price when we conduct a full accounting of the costs of the pandemic and the containment measures.' Financial comparison group Finder surveyed 40 economists, who unanimously agreed Covid restrictions would do nothing to stop property prices from soaring. On the New South Wales North Coast, stretching from north of Grafton to Tweed Heads (house pictured) on the Queensland border, weekly house rents climbed by 4.2 per cent in just one month to $631 They predicted an 8 per cent or $76,619 surge in Sydney property prices during this financial year, which would take the median property price for houses and units to $1,070,917 by July 2022. Melbourne property values were expected to climb by 9 per cent, rising by $64,014 to $817,114. Even in lockdown, consumers are less gloomy with the ANZ-Roy Morgan consumer confidence rating last week rebounding by 10.6 per cent in Sydney as New South Wales Premier Gladys Berejiklian announced lockdowns would end the Monday after 70 per cent of people, aged 16 and over, were fully vaccinated. Australian property prices rise by a record level Canberra: up 8.2 per cent in the June quarter, the biggest three-month increase since the Australian Bureau of Statistics series began in the September quarter of 2003 Sydney: up 8.1 per cent, largest quarterly rise since the June quarter 2015, and the second largest in the series Hobart: up 6.3 per cent, marking the largest quarterly rise since the December quarter 2003 Melbourne: up 6.1 per cent, the largest quarterly rise since the December quarter 2009 Brisbane: up 5.7 per cent, the steepest quarterly rise since the June quarter 2007 Adelaide: up 5.3 per cent, the largest quarterly rise since the December quarter 2007 Source: Australian Bureau of Statistics residential property prices for the June quarter Advertisement All rights reserved for this news site (dailymail) and under his responsibility