This article is from the Australian Property Journal archive
HOUSE prices growth across Australia has slowed in the December quarter, rising by 0.2% with Sydney recording its first decline in three years, according to Australian Bureau of Statistics.
The ABS’ latest Residential Property Price Index (RPPI) shows the weighted average of the eight capital cities rose 0.2% in the December, this follows a rise of 2.0% in the September quarter and a rise of 4.7% in the June quarter 2015.
The mean price of dwellings in Australia is now $612,100. The total value of Australia’s 9.6 million residential dwellings increased $31.6 billion to $5.9 trillion.
The RPPI rose 8.7% through the year to the December quarter 2015.
After three years of growth, Sydney fell 1.6%, although it remains 13.9% higher than a year ago.
For established houses, the rise in Sydney was broad based, with almost all segments of the market showing price falls. Strata with prices between $700,000 and $1.4m contributed most to the fall. For attached dwellings, the negative growth in Sydney was seen across almost all segments of the market. Strata with prices between $420,000 and $850,000 contributed most to the fall.
Melbourne rose by 1.6%, follows rises in the September 2015 (+2.9%) and June 2015 (+4.2%) quarters. The index is 9.6% higher than 12 months ago.
For established houses, the rise in Melbourne was broad based, with almost all segments of the market showing price rises. Strata with prices above $870,000 and below $570,000 contributed most to the rise. For attached dwellings, the rise in Melbourne was seen predominately in the upper and lower segments of the market. Strata with prices above $600,000 and those below $370,000 contributed most to the rise.
Brisbane increased 1.6% and is 4.2% higher than a year ago. Adelaide recorded a 0.9% quarterly increase, taking the annual growth to 3.3%.
Perth rose 0.5% but fell 2.9% over the year.
BT Financial chief economist Chris Caton said the softness in house prices in the December quarter was already factored in by the market.
As a result, he added that there should be no monetary-policy implications from the data.
“The house price data only tell us what we already knew from the more timely private-sector data. And we know that pries appear to have regained some momentum in 2016m,” Caton said.
Australian Property Journal
