Capital cities show signs of weakness

By Staff Reporter

The latest housing data from Australian Property Monitors shows softening conditions in all capital city markets except Brisbane and Adelaide in the March quarter.

Sydney and Melbourne saw growth rates ease while other cities recorded flat or falling prices.

House values in Sydney rose by 3.1 per cent in the period, a sluggish growth rate when compared with three months earlier.

“Although this is a solid result, it is nonetheless well down from the December quarter result of 5.1 per cent,” said APM senior economist Andrew Wilson.

The unit market also slowed, with prices rising by 2.6 per cent in the first quarter of 2014, compared with 3.2 per cent in the December quarter.

Dr Wilson said the frenzy of activity seen in Sydney in recent times may be coming to an end.

“The Sydney boom has well and truly faded, with house and unit price growth the lowest rate since March last year,” he said.

“The moderation of boom-time results in Sydney can be expected to continue as emerging affordability barriers and declining investor activity impacts the market.”

Melbourne also recorded weaker results in March than in December 2013, with growth of 2.8 per cent for houses and 0.2 per cent for units.

PerthPerth, TAS Perth, WA had house prices remain flat while Canberra, Hobart and Darwin all recorded falls during the period.

Only Brisbane and Adelaide saw modest gains, with 0.9 per cent and 1.3 per cent growth in house prices over the quarter respectively.

Overall, Dr Wilson said, housing market activity appears to be moderating.

“Although growth rates in Sydney and Melbourne have declined sharply over the quarter to produce their worst results in a year, the two cities clearly remain the country’s best performers,” he said.

“Other capital city markets have recorded, at best, modest growth which clearly reflects the disparity of the multi-speed recovery profile of the current growth cycle.”


Capital cities show signs of weakness
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%