Residential property prices fell 0.7% in the March quarter 2018, according to the latest figures released by the Australian Bureau of Statistics (ABS).
ABS chief economist Bruce Hockman said Australia's two largest cities led the fall, with Sydney recording the third consecutive quarter of falling property prices and the first annual price fall since the March quarter 2012. Melbourne property prices fell 0.6%, the first quarterly price fall since the September quarter 2012.
Hockman said, "Regulatory changes and tighter lending conditions have continued to affect investors, who are more active in the Sydney and Melbourne property markets. These cities have seen strong price growth over recent years particularly in detached dwellings."
Through the year growth in residential property prices continued to moderate in the March quarter 2018. Most capital cities have shown declines in annual growth rates since September quarter 2017, except Hobart, which saw a rise of 14.1%.
Hockman added, "Positive economic conditions in Hobart, such as, solid jobs growth, rising employment, and an increase in net interstate migration, are underpinning demand for property.
"Hobart has continued to experience consistently tight housing supply, which is leading to a strong rise in residential property prices."
The total value of Australia's 10 million residential dwellings decreased $22.5billion to $6.9trillion. The mean price of dwellings in Australia is now $687,700.
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