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Australian house prices slowing in July: CoreLogic RP

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Added On August 1, 2016

 SYDNEY, Aug. 1 (Xinhua) -- Australia's annual house price growth is slowing despite an uptick over July, industry data from CoreLogic RP shows, which is good news for Australia's central bank in a "live" August meeting.

House prices in Australia's combined major cities rose 0.8 percent in the month of July, up from a 0.5 percent reversal in June; however, annual growth slowed to 6.1 percent from 8.3 percent in June, the figures released by the property consultant on Monday show.

It's a sign of good news for the Reserve Bank of Australia that has been concerned about a potential bubble from an overheating property market.

"The recent moderation in the rate of capital gains should be viewed as a positive sign that growth in dwelling values may be returning to more sustainable levels," CoreLogic Asia-Pacific's director of research Tim Lawless said in a statement.

However, property demand in economic powerhouses - Sydney and Melbourne is far outpacing other major cities, increasing domestic concerns of housing affordability when household incomes have grown by less than 5 percent since June 2012.

Demand for properties in Sydney was still hot, up 1.3 percent in July for a 9.1 percent year-on-year increase, while Melbourne was up 1.1 percent in July for a 7.5 percent yearly increase. Enditem