In more evidence to support the cooling of the Australian housing market, residential property price figures released by the Australian Bureau of Statistics reveal prices have eased over the September quarter.
The weighted average price of the eight capital cities rose 1.5% in the September quarter, following a 1.9% rise in the June quarter.
Housing hot spot, Sydney experienced a price growth drop of almost 1% in the quarter – recording a 2.7% increase in prices over the quarter after a 3.5% rise in the June quarter. Melbourne also experienced subdued price growth, up 1% this quarter following 1.3% growth last quarter.
Compared with a year ago, capital city residential property prices are up by 9.1%. This includes growth of 9.2% in established house prices and an 8.5% increase in apartment prices over the year.
Shane Garrett, senior economist at the Housing Industry Association, says the ease in house price growth is due to increased levels of new home building aiding the undersupply of residential property in the market.
“Today’s figures are a welcome addition to the suite of home price data which show that price growth is easing to a much more sustainable rate. The annual rate of home price growth nationally is back in single figures for the first time in a year,” he said.
“At the same time, new home building is stretching to its busiest year in two decades. This is no coincidence.”
Residential property prices for Brisbane – which has widely been tipped as the next big market – experienced the same growth as Melbourne this quarter, at 1%. Brisbane’s annual growth rate for the year to September was 6.7%, improving on the city’s 4.1% annual growth for the year to September 2013.
The only capital city to experience negative price growth was Perth, where residential property prices dropped 0.1% in the September quarter as the city still tries to recover post mining boom.