Australia’s property boom continues as buyers continue purchasing properties. Despite banks hiking up their interest rates put a brake on the price surge, dwelling approvals rose by 2.2 percent in September.

This is reflective of how buyers have not deterred from investing in new homes. Nearly 229,438 new homes were approved in 2014. As developers warn of property price plunge soon, strong local economy, weak Australian dollar valuation and lesser supply of new homes are pushing up the prices higher.

A latest report published by the Knight Frank titled “ Prime Global Cities Index,” which monitors and compares the performance of prime residential prices across key global cities, showed that dwelling approvals in Sydney increased by 13.7 percent while Melbourne bags the fifth position with an increase of 9.4 percent annually.

The report states that with the rise of local demand and the record of a supply shortage, Sydney and Melbourne continue to witness house price growth. According to the Sydney Morning Herald, Sydney’s property market has been strengthening considering the September records. Even regional NSW home prices have gone up by 8 percent across a year, which is the fastest pace of price growth in 5½ years.

Kate Everett-Allen, partner, residential research at Knight Frank, said annual rate of growth has slowed from 7 percent to 1.9 percent over a period of two years. In 2015 September, there was a significant decline of the same to 73 percent from 90 percent recorded almost again two years ago.

"Singapore was the weakest performing prime market tracked by the index for the seventh consecutive quarter, but the rate of annual decline has slowed from minus 15.2 percent at the end of the second quarter to minus 7.9 per cent this quarter," she added.

The analysis by the Knight Frank also showed that Australia led the Prime Global Cities Index, with an average annual price growth of 11.6 percent.

Meanwhile, going by the Australian Bureau of Statistics’ record, overall dwelling approvals have decreased in September in Northern Territory (3.3 percent), Western Australia (3.2 percent), New South Wales (2.6 percent), Victoria (1.8 percent), Tasmania (1.2 percent), Australian Capital Territory (0.7 percent) and Queensland (0.3 percent) but increased in South Australia (0.4 percent) in trend terms.

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