Property prices across the country are soaring at their fastest pace in two years, with home values jumping almost $54,000 since interest rates started falling and warnings that a chronic shortage of houses, high investor activity and federal government policies are driving the acceleration.

Ahead of this week’s Reserve Bank monetary policy committee meeting, which is expected to leave interest rates steady, new figures show the prices for houses and apartments increased 1.1 per cent nationally through October.

Limited supply, government policies and the flow-on impact of past interest rate cuts are lifting property prices. Credit: Flavio Brancaleone

It was the largest one-month increase since mid-2023, which occurred after a generational jump in property prices that happened during

See Full Page