Property / Real Estate Services

March quarter 2005 housing data published in the Mortgage Choice / REIA Real Estate Market Facts shows that growth in house prices has slowed in the major capital cities

‘Moving annual median house prices in Sydney, Canberra and Brisbane surged upward from the September quarter 2001 through until mid 2004. Melbourne’s moving annual trend prices also grew strongly through the period December 2001 to December 2003. However, this trend has now reversed and prices have clearly flattened in Sydney, Canberra and Brisbane. Melbourne prices have declined. Strong growth continues in trend prices in the smaller capital cities, although this is expected to begin to slow over the remainder of 2005,’ says REIA President, Ian Wells.

The quarterly Australian weighted average median house price reported in the March quarter 2005 edition of Mortgage Choice / REIA Real Estate Market Facts was $378,609, down from the December 2004 price of $382,484, but up from the March 2004 price of $373,664.

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Despite the indications of a slowing market based on analysis of moving annual median house prices, in the March quarter 2005, median house price growth was recorded in Darwin (5.8 % to $275,000); Canberra (4.6% to $366,000); Perth (3.5% to $284,500); Hobart (2.3% to $271,000); and Sydney (1.2% to $511,000). The Adelaide median house price was stable at $270,000. A decline in median house prices was recorded in Brisbane (down 1.4% to $307,500) and Melbourne (down 4.9% to $352,000).

‘Moving annual trend prices for other dwellings have also flattened substantially in Sydney, Melbourne, Brisbane and Canberra compared with the high rates of growth experienced in 2003. However price growth for other dwellings is continuing in Adelaide, Perth, Darwin and Hobart,’ says Ian Wells.

As with house prices, the March quarter 2005 saw growth in median other dwelling prices despite the overall declining trend. Growth was recorded in Darwin (11.4% to $195,000); Hobart (6.3% to $221,000); Canberra (6.0% to $291,500); Perth (3.9% to $228,500) and Sydney (2.7% to $380,000). Declines in median prices were recorded in Brisbane (-2.0% to $240,000), Melbourne (-5.0% to $285,000) and Adelaide (-6.6% to $205,000).

‘REIA data confirms the effect interest rates have had in causing a softening of the market. Any further rise in interest rates is likely to have an adverse effect on the market,’ says Ian Wells.

Source: Real Estate Institute of Australia