This article is from the Australian Property Journal archive
NATIONAL house prices have declined by 0.6% in July for the seventh months in a row.
The RP Data-Riskmark data shows house prices are 2.9% lower than a year ago. The performance across states was mixed with the sharpest fall recorded in Melbourne (-1.4%), Adelaide (-1.1%) and Perth (-1.1%).
The Perth and Brisbane housing markets continue to underperform with prices 6.3% and 6.6% lower respectively over the year.
Sydney posted a modest gain of 0.1% whilst Canberra (+1.9%) recorded stronger gains and remains the best performing market in Australia with prices up 1.9% over the past year.
The top end of the market continues to experience the sharpest falls in home prices. In original terms, home prices fell by 2.3% m/m in the top 20% of capital city suburbs and are 5.7% lower over the year.
Falls were more modest for the middle 60% of suburbs (-0.9%) and the bottom 20% (-0.7%) of suburbs in July, although these market segments are still 2.6% and 2.4% lower over the past year respectively.
ANZ Bank’s Riki Polygenis and Dylan Eades said in the near tem, a number of headwinds for the Australian housing market remains.
“There is still significant global economic uncertainty, particularly in relation for the growth prospects for Europe and the US. This will continue to weigh on confidence and result in heightened equity market volatility.
“Furthermore, softer economic domestic economic conditions and slowing employment growth are likely to weigh on housing market sentiment and provide further downside risks to dwelling prices in the near term. Nonetheless, labour market conditions are anticipated to remains relatively tight and in conjunction with household income growth and steady interest rates should provide some offsetting support to the market, limiting the size of any future fall in prices,” they predicted.
Home prices (July, seas. adj.)
|
m/m
|
y/y
|
Level
|
Sydney
|
+0.1%
|
+0.5%
|
$500,000
|
Melbourne
|
-1.4%
|
-4.3%
|
$475,000
|
Brisbane
|
-0.4%
|
-6.6%
|
$420,000
|
Adelaide
|
-1.1%
|
-4.5%
|
$380,000
|
Perth
|
-1.1%
|
-6.3%
|
$455,000
|
Hobart
|
n/a
|
n/a
|
$320,000
|
Darwin
|
+0.6%
|
-3.3%
|
$425,000
|
Canberra
|
+1.9%
|
+1.9%
|
$490,000
|
Australian capitals
|
-0.6%
|
-2.9%
|
$455,000
|
Australian Property Journal
