House prices are soaring in Australia’s state capitals as all-time low interest rates and a lack of properties on the market drive up valuations.
Six cities have seen record prices for the third quarter in a row, according to a report by real estate site Domain.
It also said Sydney, Canberra, Hobart and Darwin have seen property values rise by over 20% in the last year.
Experts warn the increases are “unsustainable” as property becomes unaffordable for many.
The Domain House Price Report highlighted a “perfect storm” of rock bottom borrowing costs, a small number of properties on the market, strong demand, and government stimulus money amid the pandemic.
Sydney, Australia’s most populous city, saw median house prices reach a record A$1,410,133 ($1.04m; £747,215) after rising by more than A$1,200 a day over the last three months.
Meanwhile, Australia’s capital Canberra saw the cost of a home soar by almost 30% over the last 12 months, while prices in Hobart in Tasmania jumped by more than 28% over the same period.
The survey also pointed out that it will make property even less affordable for first-time buyers.
The report echoed many economists’ views that the rises were unsustainable.
“This is a very unusual rate of growth. Unusual circumstances create extraordinary outcomes,” chief of research and economics Nicola Powell said.
Last month, official figures showed that Australia’s economy had continued its rapid rebound, to grow larger than it was before the Covid-19 pandemic.
Growth was spurred by a soaring demand for commodities around the world and spending by consumers and businesses.
The sharp economic recovery came even as the country faces ongoing state lockdowns to help slow the spread of the coronavirus.