New home prices hold flat as inflation climbs to 4.3 per cent
New dwelling prices stayed unchanged in September despite inflation hitting 4.3 per cent and construction costs rising.
While fuel prices jumped almost 24 per cent and gaming consoles soared 15.5 per cent over the year, new home prices remained flat. The consumer price index climbed to 4.3 per cent in September, driven by global oil shocks and an artificial intelligence investment boom pushing up tech costs.
Builders facing lower housing demand have increased discounts and promotional offers, but this kept new dwelling prices steady despite their own rising construction expenses. Rents also stayed modest, climbing just 0.2 per cent in the month.
Together, rents and new home prices make up about one-sixth of the consumer price basket, so housing has not added to inflation pressure. Reserve Bank governor Michele Bullock acknowledged domestic spending and government decisions are also fuelling the overall price surge.
- 4.3 per cent in September
- Consumer price index
- up almost 24 per cent over 12 months
- Fuel prices
- up 15.5 per cent
- Gaming consoles
- about one-sixth
- Housing in price basket
Why it mattersFlat new home prices offer a rare break for buyers struggling with affordability, and prevent housing from pushing inflation higher.
AustraliaAustralian house buyers are seeing improved affordability for the first time in years, though affordability remains worse than a year ago.
Corroborated byperthnow.com.au
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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