This article is from the Australian Property Journal archive
House prices on the east coast of Australia have fallen in the March 2006 quarter, whilst Perth and Darwin continue to boom, according to the latest figures released by Australian Property Monitors.
According to Australian Property Monitors, house prices in Sydney, Melbourne, Brisbane, as well as Canberra and Hobart, all recorded falls of approximately half to 1% for the March 2006 quarter.
In Sydney, the median house price fell by 1.1% to $516,000, easing 3.8% when compared to March 2005.
In Melbourne, house prices fell by 1.1% to $267,000, however, there are signs of a slow recovery underway in Melbourne, with house prices edging up 0.9% in the 12 months to March 2006.
Brisbane house prices fell by 2.4% decline to $247,000 in the March 2006 quarter, however, house prices were 0.5% higher when compared to the March 2005 quarter.
APM’s general manager Louis Christopher said the results for the Sydney market are somewhat surprising given the noticeable pick up in sales activity and in particular, auction clearance rates that the market has had so far this year.
“March is always a difficult month to properly assess the market given the January holiday period. I would not be surprised if the median was revised slightly upwards once we receive more data from the Valuers General. Even so, it is still clear the market was weak during this period,” Christopher added.
Only Perth, Adelaide and Darwin recorded median house price increases during the quarter.
During the quarter, Darwin house prices rose by another by 3.3% to $358,000.
Darwin house unit prices are now up by 16.3% for the 12 month period to March 2006.
According to APM, Perth now has the third highest median house price for all capital cities in Australia as well as holding the fastest growth rate for any residential property asset class.
Once again, Perth was the only city to record the fastest rise in house prices, rising by 5.4% to $396,000 during the March 2006 quarter.
Perth house prices are 24.8% higher for the 12 month period to March 2006.
APM forecasts that if the existing growth rate continues, Perth will surpass Canberra, currently second, as early as the present June Quarter.
Christopher, who provides the Reserve Bank of Australia with house prices data, said the latest interest rate of 0.25 basis points to 5.75% will hit market.
“I believe, now with the latest rate hike, that the forecasted recovery we had made for this year in Sydney will stall and there is now a greater probability that Sydney house prices will continue to decline by up to five% for 2006.
“In Brisbane and south-east Queensland, the property market has been flat for sometime. Given that the area is heavily dependent upon investment property spending, I suspect we may now see a modest fall in residential property prices in 2006 of somewhere between minus 1 to minus 3%," Christopher said.
"Like Brisbane, Melbourne has experienced a flat housing market for some two years now. This latest rate hike will dampen any potential of a recovery this year. Overall, Melbourne residents and investors should expect a flat market in 2006,” he added.
Christopher said Perth will be the only one market where the latest rate hike will have minimal impact.
“The global commodities boom story is still intact, and while this is the case, Perth residential property prices will continue to rise robustly," he concluded.
By Nelson Yap
Composition-adjusted house prices
|
City
|
Median House Price
|
Percentage change
|
|||
|
|
March
Quarter 2006
|
December
Quarter 2005
|
March
Quarter 2005
|
3 month change
|
12 month change
|
|
Sydney
|
$516,000
|
$521,000
|
$536,000
|
-1.1%
|
-3.8%
|
|
Melbourne
|
$347,000
|
$350,000
|
$343,000
|
-1.1%
|
0.9%
|
|
Brisbane
|
$326,000
|
$330,000
|
$324,000
|
-1.1%
|
0.5%
|
|
Adelaide
|
$310,000
|
$305,000
|
$300,000
|
1.7%
|
3.4%
|
|
Canberra
|
$405,000
|
$408,000
|
$400,000
|
-0.6%
|
1.4%
|
|
Perth
|
$396,000
|
$376,000
|
$318,000
|
5.4%
|
24.8%
|
|
Darwin
|
$358,000
|
$347,000
|
$308,000
|
3.3%
|
16.3%
|
|
Hobart
|
$223,000
|
$228,000
|
$223,000
|
-2.2%
|
-0.2%
|
Note: composition adjusted median prices have been rounded to the nearest thousand dollars. March quarter results are preliminary. December quarter results have been revised from the February 2006 release.
Source: www.homepriceguide.com.au based on sales reported to Australian Property Monitors as at 25 April 2006.
Composition-adjusted unit prices
|
City
|
Median Unit Price
|
Percentage change
|
|||
|
|
March
Quarter 2006
|
December
Quarter 2005
|
March
Quarter 2005
|
3 month change
|
12 month change
|
|
Sydney
|
$358,000
|
$363,000
|
$370,000
|
-1.4%
|
-3.3%
|
|
Melbourne
|
$267,000
|
$272,000
|
$268,000
|
-2.1%
|
-0.6%
|
|
Brisbane
|
$247,000
|
$253,000
|
$241,000
|
-2.4%
|
2.3%
|
|
Adelaide
|
$212,000
|
$207,000
|
$200,000
|
2.1%
|
5.7%
|
|
Canberra
|
$298,000
|
$293,000
|
$301,000
|
1.8%
|
-0.9%
|
|
Perth
|
$259,000
|
$247,000
|
$194,000
|
4.8%
|
33.8%
|
|
Darwin
|
$266,000
|
$236,000
|
$203,000
|
12.9%
|
31.3%
|
|
Hobart
|
$198,000
|
$187,000
|
$203,000
|
5.8%
|
-2.8%
|
Note: composition adjusted median prices have been rounded to the nearest thousand dollars. March quarter results are preliminary. December quarter results have been revised from the February 2006 release.
Source: www.homepriceguide.com.au Based on sales reported to Australian Property Monitors as at 25 April 2006.
NOTE: Hobart Median House Prices
APM is pleased to announce that it is now publishing Hobart residential house price data from the Information and Land Services Division of Tasmania. This makes APM now the only independent provider of detailed house and unit price information covering every state and territory in Australia.
