Australian home price growth slows in Nov -RPData
SYDNEY Dec 2 (Reuters) - An index of home prices for Australia's major cities rose only marginally in November, a slowdown after two months of strong gains that should temper concerns about a bubble, industry data showed on Monday.
Figures from property consultant RP Data-Rismark showed overall dwelling prices rose 0.1 percent in November, from October when they climbed 1.3 percent.
Annual growth in its home price index edged up to 8.0 percent, a three-year high, from 7.9 percent in October. Gains were led by Sydney where prices were up 12.5 percent on November last year, while Perth recorded growth of 8.9 percent and Melbourne 6.6 percent.
The median property value across all 8 major cities hit A$525,000 ($478,000).
RP Data's senior research analyst Cameron Kusher said that while further growth was likely for this cycle, the peak may have passed for Sydney and Melbourne.
"The increase in home values seems to be slowing to a level reflective of more sustainability when compared to the growth in other indicators," he added.
While there has been much media speculation of how record-low interest rates are feeding a "bubble" in home prices, policy makers have been unfazed.
The deputy governor of the Reserve Bank of Australia (RBA) recently said there was nothing to fear in higher prices, in part because it was necessary to encourage more home building.
The central bank has been counting on a revival in construction to provide vital support to the Australian economy as a long boom in mining investment starts to cool. (Reporting by Wayne Cole; Editing by Shri Navaratnam)
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