House prices rise 3.3% in June Qtr

Posted on 30/07/2009  

Median house prices rose 3.3% in Australian capital cities in the June Quarter, but remain slightly below the level of 12 months ago.

 

The latest Quarterly Housing Data from Australian Property Monitors shows all capital cities except Perth recorded a meaningful rise in median house prices in the June Quarter.

 

The rises mean four of the eight capitals have median prices higher than a year earlier (Melbourne, Hobart, Darwin and Adelaide). Sydney and Canberra are only slightly below last year’s price levels while Brisbane and Perth remain 4.5% below the pricing of June 2008.

 

Darwin recorded the highest growth in the median house price in the June Quarter but, conversely, is the only capital city to record a decline in its median unit price. Six capital cities recorded a significant rise in unit prices while the median was unchanged in Brisbane.

 

The average rise in unit prices across the eight capital cities was 2.0%.

 

APM says the June Quarter result was the strongest quarterly growth in house and unit prices since December 2007. “The consolidation that began in the March Quarter has now transformed into strong growth across the country,” says APM’s Matthew Bell.

 

He says the affordable end of the market – boosted by low interest rates, flat prices and government incentives – supported prices at the end of 2008 and early 2009, but in the June Quarter there has been growth in the upper end of the market as well. This coincided with the stockmarket rebounding nearly 30% from the March lows and release of better-than-expected economic data.

 

“As the First Home Owners Boost begins phasing out in September, demand is expected to remain strong as potential buyers point to low interest rates and previous periods of flat or falling prices as important drivers in their decision to buy a property in the next 12 months,” Bell says.

 

ENDS

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