Property prices decline as majority of capital cities drag down

By Sasha Karen 12 September 2018 | 1 minute read

Capital city dwelling prices saw a decline across the country over the June quarter due to five capital cities, while the other three saw some growth.

property prices decline, arrow down, drag down

Data contained in the Real Estate Market Facts report from the Real Estate Institute of Australia (REIA) shows house prices dropped 0.8 of a percentage point and other dwelling types dropped 0.3 of a percentage point across Australia’s capital cities.

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, PerthPerth, TAS Perth, WA, 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.

RELATED TERMS

Capital

Capital refers to the financial resources that are available to be used for income generation.

House

A house refers to a building or property used as living quarters or an individual’s place of permanent or temporary residence.

House

A house refers to a building or property used as living quarters or an individual’s place of permanent or temporary residence.

Property

Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.

Rent

Rent refers to the payment made by a tenant periodically to a landlord for the use and occupancy of a property.

Rent

Rent refers to the payment made by a tenant periodically to a landlord for the use and occupancy of a property.

Vacancy

A vacancy is a term that describes an unoccupied or empty space.

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Property prices decline as majority of capital cities drag down
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