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The Domain House Price Report for the September quarter has found that Sydney house prices are now at late 2016 levels, Melbourne house prices are now at 2017 levels, and that units in both Sydney and Melbourne continued to outperform houses, but in all other capital cities, it is the other way around where houses outperform units.
The report found that, nationally, house prices fell by 2.6 per cent over the September quarter and 2.9 per cent over the year to $781,787.
It also found that unit prices were down by 1.6 per cent over the September quarter and 1.4 per cent over the year to $549,163.
In Canberra, house prices increased over the year but were flat over the quarter. In Brisbane and Adelaide, house prices were also up over the year but down slightly over the quarter. Hobart continued to grow strongly, recording double-digit annual growth.
Unit prices fell over the September quarter and year across all capital cities, apart from a minor quarterly improvement in Adelaide as well as annual growth in Melbourne and Hobart.
The report found that all capital cities are now underperforming relative to last year, except for Perth and Darwin.
Domain senior research analyst Dr Nicola Powell said that it’s a development that will “no doubt” be welcomed by Australia’s first home buyers.
“Property prices across almost all capitals continue to fall. In many markets throughout Australia, gaining entry has become a greater possibility,” Dr Powell said.
“The downturn has been aided by the tightening of credit by the banks following regulatory intervention and a bruising royal commission. Rising mortgage rates, tighter credit conditions and reduced borrowing power have impacted all capital cities to a varied degree.”
Dr Powell said that, over the quarter, houses in Hobart and units in Adelaide have been the only segments to buck the national downward trend.
“Australia’s six-year low unemployment rate, strong population growth and continued economic growth suggests [that] the decline we’re seeing, particularly in Sydney and Melbourne, has been driven by deliberate efforts to tighten credit availability.
“This is new territory for an Australian housing downturn, with prior slowdowns tending to coincide with increasing rates from the Reserve Bank.”
Sydney
House prices fell by 3.1 per cent over the September quarter and 6.5 per cent over the year to $1,101,532.
Unit prices fell by 0.7 of a percentage point over the September quarter and 1.3 per cent over the year to $734,775.
Melbourne
House prices fell by 3.9 per cent over the September quarter and 3.2 per cent over the year to $852,980.
Unit prices fell by 1.6 per cent over the September quarter and grew by 1.5 per cent over the year to $496,260.
Brisbane
House prices fell by 0.4 of a percentage point over the September quarter and grew by 2.2 per cent over the year to $567,376.
Unit prices fell by 3.8 per cent over the September quarter and 6.8 per cent over the year to $376,972.
Adelaide
House prices fell by 0.3 of a percentage point over the September quarter and increased by 3.8 per cent over the year to $535,527.
Adelaide was the only capital city to see an increase in units over the quarter, by 1.3 per cent, but this marginally declined by 0.2 of a percentage point over the year to $316,163.
Canberra
House prices remained steady over the September quarter and increased by 4.0 per cent over the year to $740,215.
Unit prices fell by 3.4 per cent over the September quarter and 4.0 per cent over the year to $412,888.
Perth
House prices fell by 2.4 per cent over the September quarter and 2.2 per cent over the year to $544,609.
Unit prices fell by 7.1 per cent over the September quarter and 4.5 per cent over the year to $347,089.
Hobart
House prices increased by 3.7 per cent over the September quarter and 19.3 per cent over the year to $478,491. It was only capital city to record double-digit house price growth.
Unit prices fell by 4.1 per cent over the September quarter but increased by 12.8 per cent over the year to $352,111.
Darwin
House prices fell by 2.2 per cent over the September quarter and 12 per cent over the year to $519,260.
Unit prices fell by 2.6 per cent over the September quarter and 11.4 per cent over the year to $312,456.
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