This article is from the Australian Property Journal archive
GROWTH will return to the housing markets next year, with the median house prices expected to recover by 3% to 5%, according to Australian Property Monitors.
APM’s senior economist Dr Andrew Wilson said despite earlier signs of momentum, a sustained Spring revival in buyer activity failed to materialise, signalled by subdued auction clearance rates, particularly in Sydney.
In the quarter to October, national median house prices fell by 1.6% and were down by 4.2% over the year.
However Dr Wilson said 2012 will provide mixed outcomes for housing markets with some capital cities set to revive strongly while others will remain flat despite the continued prospect of strong economic growth in Australia.
Darwin, Perth and Brisbane have the best prospects for price growth, whilst Sydney and Canberra are also expected to achieve reasonable growth in the year.
Prices are expected to rise by 5% to 10% in Darwin, Perth and Brisbane. Followed by Sydney and Canberra with 3% to 5%.
Melbourne, Adelaide and Hobart are expected to be more subdued with 0 to 3% increase.
“Australia’s economic fundamentals are strong, and are well positioned to weather any downturn in international markets. This, coupled with renewed buyer confidence, will be the key to driving prices growth in the new year,” he added.
Meanwhile the median capital city house price declined by 3.7% in the September quarter, according to the Real Estate Institute of Australia.
According to the REIA, the weighted average median house price for the eight capital cities is now $521,238.
Sydney has the highest median house price across the capital cities at $637,600 which is 22.3% above the weighted capital cities average.
The lowest house price was recorded in Hobart at $345,000, which is 33.8% below the weighted capital cities average.
REIA president Pamela Bennett said all Australian capital cities recorded decreases in median house prices with the exception of Melbourne, which increased 1.4%.
Compared to the September quarter of the previous year, the largest decreases in median house prices were evident in Hobart, down 9.2%, and in Perth and Darwin which both recorded decreases of 8.2%.
The weighted average median price for other dwellings is $424,176, representing a decrease of 1.4% over the quarter and 0.1% over the year. With the exception of Canberra where prices increased 1.2% over the quarter, all Australian capital cities recorded decreases in the median price for other dwellings.
Rents for three bedroom houses remained unchanged for most cities. The only capital cities to record increases were Perth and Darwin, up 2.6% and 0.9% respectively.
“Although the September quarter data does not reflect the recent rate cuts yet.
“We anticipate this will bring positive results for the residential property market by improving the level of activity in the market, in particular, the level of first home buyers entering the market,” she concluded.
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