''Australian capital city dwelling prices have risen by 4 per cent since their trough in mid 2012 (Graph 3.6, Table 3.2). Recent price rises have been relatively broad based, with all state capitals recording higher prices over the three months to January. Some other indicators also point to a strengthening in the established housing market. Auction clearance rates in Sydney and Melbourne have continued to rise from their lows in late 2011 and early 2012. Private sector surveys indicate that, on balance, households expect house prices to rise further over the year ahead. Housing loan approvals increased moderately over the second half of 2012, underpinned by loans to investors and repeat buyers, although they were little changed relative to the outstanding stock of housing credit''(p.33).
''Residential vacancy rates remain relatively low at around 2 per cent, contributing to rents growing faster than inflation and rising rental yields (Graph 3.7). Nationwide, rents are growing at an annual rate of around 4 per cent. With rents growing faster than dwelling prices over the past year, nationwide gross rental yields have increased to 4¾ per cent (and as high as 5½ per cent in Perth)" (p.34).
