The Housing Industry Association (HIA) said its survey of large-volume builders showed new home sales rose a seasonally adjusted 6.1 % in November.
Australian home prices boasted their biggest increase last year since 2009 as December ended on a high note for the red-hot markets of Sydney and Melbourne.
Financiers and estate agents say Asian investors have found new avenues to re-enter the market, including targeting cheaper homes and settling in cash.
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Fewer lower prices houses are being sold in Australia with the residential property market seeing more the number of $1 million plus home sales soaring.
Over the 12 months to June 2016 some 14% of all house sales and 7.3% of all unit sales were at a price of at least $1 million, according to the data from real estate firm Corelogic.
To put these figures into perspective, just five years ago 7.5% of all house sales and 4% of all unit sales were within this price range.
Perhaps buying a house in Sydney, Australia's most expensive city, should be an Olympic event. It takes stamina, meticulous planning and very deep pockets.
House prices here have jumped by almost 60% in the last five years, while apartments have risen by 44%, according to figures from corelogic.com.au.
There are many reasons why, among them record low interest rates, generous tax breaks for investors and foreign buyers.
New laws introduced at the beginning of July mean that foreign owners of property in Australia worth £2 million or more face paying an extra 10% in tax.
Sellers must have proof that they are Australian citizens to avoid the tax which has been introduced in a bid to deter wealthy forging buyers from pushing up property prices.
The change came at a time when prices in Australian state capitals were soaring and much of this was blamed on so called wealthy investors, especially from China.
Almost two thirds of Australian’s think now is a good time to be buying a home while roughly the same proportion believe the housing market is vulnerable to a significant correction.
The latest quarterly housing market sentiment survey by CoreLogic and TEG Rewards housing market sentiment survey highlights the paradox in housing market attitudes.
The data shows that 64% of respondents thought it was a good time to buy a property, up from 60% of respondents a year ago. However, 65% also indicated they thought property values could suffer a significant correction.
The number of new home approvals in Australia fell by 0.9% in June, the second monthly fall in a row, according to the latest data to be published.
In seasonally adjusted terms, total approvals decreased 2.9% with both total other residential dwelling approvals and total houses down by 3.4% and 2.4% respectively.
The figures from the Australian Bureau of Statistics (ABS) also show that the value of total building approved rose 1.2% in June, in trend terms, and has risen for six months. The value of residential building rose 0.1% while non-residential building rose 3.7%.
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