Melbourne and Sydney have reported sharp declines in the rate of house price growth, with most other capitals also reporting weakening market activity, according to the September quarter Domain.com.au House Price Report.
The quarterly report indicates the general outlook for housing markets across Australia is moderate to modest growth over the remainder of 2015 and in to 2016.
Also read: Aussie house prices to drop
The key findings of the September Domain.com.au House Price Report are:
- Sydney has experienced the lowest quarterly growth rate since March 2014
- Melbourne's house price growth moderates
- Brisbane's property market remains flat
- Perth house prices still falling
- Canberra market continues to strengthen
“The recent strong capital city property markets of Melbourne and Sydney are now recording weaker price growth, with low interest rates – previously a key driver of the market – gradually losing impact," said Domain senior economist, Dr Andrew Wilson.
"With rates steady over five consecutive months and income growth remaining subdued, the capacity for house price increases is moderating.
“Local factors continue to drive capital city house price growth, with resource states, QLD, WA and NT, the clear underperformers as a consequence of weakening economies," Wilson said.
The great Sydney house price boom has ended, with house price growth tracking back sharply over the September quarter.
Sydney recorded a median house price of $1,032,433, up 3.2 per cent over the quarter — the lowest quarterly rate of growth reported since March 2014.
Sydney’s unit prices increased by 1.5 per cent over the September quarter to $673,182 – an annual rise of 15.1 per cent.
The rate of growth this quarter was also down significantly when compared to the record 7.4 per cent reported over the June quarter.
The Melbourne median house price increased by 2.8 per cent over the September quarter – exceeding $700,000 for the first time.
With a median house price of $707,415, Melbourne is clearly the second highest capital city housing market, still well behind Sydney but ahead of the next placed Darwin.
While a strong result, Melbourne house price growth over the September quarter was well below the 6.0 per cent recorded in the previous June quarter.
Melbourne unit prices increased by 1.9 per cent over the September quarter to $435,674 with annual prices rising by 2.4 per cent.
The Brisbane housing market reported another modest result for house price growth over the September quarter.
Its median house price increased by just 0.8 per cent to $497,143 with annual prices up by 3.6 per cent.
With the market remaining largely subdued, it is likely that Brisbane house price growth this year will be well below the 6.5 per cent recorded over 2014.
Brisbane unit prices fell by 0.6 per cent over the September quarter to $362,737, a drop year-on-year of 5.6 per cent.
The Adelaide housing market reported a relatively flat result over the September quarter, with the median house price increasing by just 0.3 per cent to $485,873. This modest result follows two strong quarters of growth with the annual house price still up by 5.1 per cent.
Adelaide unit prices also increased slightly, up by just 0.6 per cent over the September quarter to $293,711.
The Perth housing market continued to decline over the September quarter, recording its sharpest fall in house prices since June 2011. The median house price in Perth fell by 2.4 per cent to $589,100 and is now below $600,000 for the first time since the September quarter 2013.
Perth unit prices also fell sharply over the September quarter down by 3.7 per cent to $390,916 for an annual decline of 2.8 per cent.
Hobart’s house prices increased marginally over the September quarter, up by 0.9 per cent to $346,370.
Rebounding strongly, Hobart’s unit prices performed well over the quarter increasing by 8.5 per cent following a 4.5 per cent fall over the previous June quarter.
The Hobart median unit price is at $269,302 – an increase of 6.1 per cent over the past year.
The Canberra median house price increased by 2.3 per cent over the quarter to reach $625,092.
House prices have now increased by 7.8 per cent over the past year, representing a rate of growth behind only Sydney and Melbourne of all the Australian capitals.
Canberra’s median unit price fell by 4.7 per cent over the September quarter to $385,825 to be below $400,000 for the first time since the December quarter 2009.
Annual unit prices in Canberra are now down by 5.7 per cent.
Darwin’s house prices decreased by 2.3 per cent over the September quarter to $639,042 following strong growth of 3.6 per cent recorded over the June quarter.
Darwin unit prices were also down sharply over the September quarter falling by 6.1 per cent to $408,904 – an annual decrease of 6.9 per cent.