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Housing unaffordability is a high profile issue, but according to some industry experts, Australia's rising house prices signify normal growth levels
IN RECENT times, several industry experts have slammed speculation that Australia is in the midst of a housing crisis.
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The Real Estate Institute of Australia (REIA) and property data analysts RP Data joined the anti-bubble crusade, arguing that if Australia is a so-called housing bubble, then it has been so for some time, given property price trends.
"REIA's data highlight that historically, median prices compared to income have been relatively stable for the past ten years, taking into account normal fluctuations," REIA president David Airey said.
Hitting back at public comments made by GMO co-founder Jeremy Grantham that Australia is in a housing bubble, Mr Airey said the opposite is the case, with Australia's property cycle going through a normal transition.
The latest figures appear to support Mr Airey's point.
Last month, the average median house price in Australia's capital cities was $478,063, according to RP Data.
In Sydney and Melbourne, median house prices were $575,000 and $490,000 respectively.
In the year to October, the average median house price in Australia's capital cities rose on average by 15.35 per cent, with the highest price rises in Sydney (21.51 per cent), Melbourne (20.91 per cent) and Canberra (15.05 per cent).
Meanwhile, Brisbane posted the weakest house price growth over the decade, at 10.71 per cent.
Last month, units also enjoyed price growth, with the median unit price in Melbourne at $425,000.
Over the decade, units have on average experienced price rises of 11.17 per cent. Darwin posted the strongest unit price growth over the past 10 years, at 12.11 per cent. Meanwhile, according to RP Data, Adelaide posted the weakest unit price growth over the same period, at 8.35 per cent.
