Established property prices fell by 1 per cent over the December quarter, new research has revealed.
According to the latest ABS Index of Established House Prices, properties prices are now, on average, 4.8 per cent lower than December 2010.
“The ABS existing house price series reveals annual declines in established house prices for all eight capital cities, and quarterly declines with the exceptions of Perth, Hobart, and Canberra,” Housing Industry Association chief economist Harley Dale said.
“Today’s update does bear some resemblance to the annual declines evident in late 2008 and early 2009. There are, of course, enormous variations in house prices within and across cities (and regions) in Australia, but as was the case in 2008/09, the widespread price plunge portended by some for 2011 predictably never emerged.”
Mr Dale said lower interest rates would ultimately feed into an improved environment in 2012, although he does not expect to see a return to widespread strong house price growth.