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Units outperform houses in Sydney and Melbourne in new report
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Units outperform houses in Sydney and Melbourne in new report

Units outperform houses in Sydney and Melbourne in new report

by Tim Neary | October 25, 2018 | 1 minute read

Fresh data has found that Sydney and Melbourne units are actually outperforming houses over the September quarter, while the rest of the capital cities are seeing the reverse.

Apartments
October 25, 2018

The Domain House Price Report for the September quarter 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.

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The report found that all capital cities are now underperforming relative to last year, except for PerthPerth, TAS Perth, WA 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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