Australia’s housing market climbed further in May and Sydney matched a record high as a supply shortfall and swelling population overshadowed the impact of high borrowing costs.

Australian home prices climbed at a brisk pace in May, posting the largest monthly gain since October, as a sustained squeeze on supply of affordable homes in most major capital cities continued to push prices up nationwide,

CoreLogic Research Director Tim Lawless says Victoria’s “new taxes for property” contributed to lower house prices in Melbourne.