New data from the Government’s Australian Bureau of Statistics shows house prices in Australia’s eight capital cities have dropped 2.2% in the March quarter, with prices dropping 6.7% over the past 12 months.
According to the ABS, Sydney prices dropped 2.9% in the quarter, with Melbourne dropping 2.3%, Brisbane falling 1.1%, Adelaide down 0.8% and Perth declining a substantial 3.6%.
Prices in Hobart gained 0.1%, Darwin prices gained 2.2%, and Canberra’s house prices rose a modest 0.5% in the quarter.
Over the past year, Perth prices have dropped a massive 10.1% with Sydney following with a 7.3% decline. Melbourne prices dropped 6.7%, Brisbane prices fell 6.3% and Canberra declined 5.1%.
But Darwin prices gained 10.8% over the last year, with Hobart prices also gaining 0.6%.
But better price data may be just around the corner, with capital cities continuing to record good clearance rates.
In Melbourne, 388 auctions were held over the weekend with 237 sold at a clearance rate of 77%, down from last weekend’s 85%.
But the market is still down from this weekend 12 months ago, when the city recorded 870 properties at auction.
Despite the large decline in homes on offer, Real Estate Institute of Victoria chief executive Enzo Raimondo said the result “indicates strong underlying demand due to improved affordability…and generous grants for first home buyers”.
In Sydney, the country’s largest market recorded a 68% clearance rate with 124 properties selling out of 173 properties on offer, with sales totalling $73.2 million.
Brisbane dropped from last week’s 44% clearance rate to just 28%, with 10 properties selling out of 35. Adelaide also declined from last week’s 67% to just 54% with seven properties selling out of 12 on the market.
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
