Property prices decline as majority of capital cities drag down

According to REIA president Malcolm Gunning, this was indicative of a shift in some of Australia’s significant markets.

“The June quarter figures reflect reports of a changing dynamic in the market, particularly in the nation’s major cities,” Mr Gunning said.

The weighted average median price for capital city houses declined to $765,098 over the quarter with declines in Sydney Melbourne, Perth, Darwin and Canberra, while other dwelling types dropped $590,935 with declines in Sydney, Perth, Adelaide and Canberra.

Mr Gunning said Canberra had the largest decline in house prices, while Adelaide had the largest decline in other dwellings.

“Adelaide has both the lowest median price for houses at $471,000 and the lowest median price for other dwellings at $354,167,” Mr Gunning said.

Median rent for three-bedroom houses only saw rises in two capital cities of Canberra and Darwin, remained steady in Perth, while recorded declines for the majority of the capital cities with Sydney, Melbourne, Brisbane, Adelaide and Hobart. Meanwhile, median-rent for two-bedroom houses was identical save for a rise in rent in Hobart and a decline in rent in Darwin.

Regardless, the rental market is tightening, as the weighted average vacancy rate for the capital cities declined to 2.5 per cent, with Canberra coming out as the tightest market with a vacancy rate of 0.8 of a percentage point.

Looking to loans, Mr Gunning said there has been a drop of 3.8 per cent, with all states except for Tasmania recording drops in loan numbers. The largest drop was in Western Australia with a drop of 13.6 per cent.

“In Sydney and Melbourne – the two cities which have had the largest price increases over the past few years – the drop in loans is attributable to APRA restrictions on investment loans and more stringent home lending criteria,” Mr Gunning said.