House prices increased by more than 20 per cent in two capital cities last year, according to figures released a day before the Reserve Bank decides on a possible interest rate rise.
While the average increase in house prices across the eight capital cities rose by 12.3 per cent in 2007, homes in Brisbane and Adelaide experienced an increase of more than 20 per cent, according to figures released by the Australian Bureau of Statistics (ABS).
Houses in Brisbane increased in value by 21.6 per cent in the 12 months to December, while homes in Adelaide went up 20.2 per cent.
The ABS figures, released today, came less than 24 hours before a board meeting at the Reserve Bank.
It is likely that board members will vote for a rise in interest rates.
According to the ABS, the average Melbourne house increased in price by 18.1 per cent, while Perth experienced the smallest rise in 2007. The Western Australian average house price rose just 1.1 per cent.
In Canberra, the average house increased in value by 14.3 per cent.
Houses the nation’s most populated city experienced one of the smallest increase in 2007. The average price of a Sydney home went up by eight per cent.
The price of the average house in Darwin and Hobart increased 11.1 per cent.
