Sydney is the only capital city to have recorded a modest capital gain in the past year with all other capitals either flat or falling, the latest RP Data/Rismark Hedonic Index has revealed.
Dwelling prices in the New South Wales capital rose a slight one per cent in the year to May to finish at a median price of $522,000.
Natural disaster-stricken Brisbane recorded the worst result, with dwelling values down 7.5 per cent for the same period.
Not far behind was Perth, where despite great hopes for the resources boom, poor buyer confidence has seen prices dip 5.9 per cent for the year.
The Canberra property market held relatively firmly, dipping an ever so slight 0.1 per cent.
Meanwhile Melbourne is down 2.9 per cent, according to RP Data and Rismark.
Capital city values have now fallen for the past five months but it seems the weakest period is over, with the worst results coming from the month of January.
January’s 1.2 per cent decline in the national capital dwelling value accounted for close to half of the 2.7 per cent decline recorded for the year.
RP Data’s Tim Lawless said the soft market conditions reflected weak consumer confidence.
“Consumers are well and truly focused on saving, not spending. Despite the low rate of unemployment and the strength of the resources sector, it is clear that the average Australian is content to pay down debt and wait for some economic certainty to return.”