3 May 2010

Australian house prices up

4:10 pm on 3 May 2010

House prices in Australia are still going up.

Prices rose by just over 3% in the March quarter.

That represents a slowdown from more than 5% in the previous quarter, but average prices are still 16% higher than a year ago.

Radio New Zealand's Sydney business correspondent says a growing gap between demand and supply is the biggest influence.

Government data shows the gap between the number of new homes and the number required has risen to almost 80,000.

The housing industry blames red tape and the refusal of state governments to release more land on the fringes of the major cities.