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The latest figures by the Domain Group came out today showing that all but three capital cities saw a decrease in median house price over the last three months.
These stats have created lots of headlines and I’ve had 4 media outlets ring me asking for my thoughts on the terrible results!
What terrible results?
The national median house price also fell by 1.0 per cent – that’s not terrible.
I took my time explaining to the journalists that we’re having a soft landing and this is just part of the normal property cycle
Let’s look at what Domain’s June 2018 Quarter results show
New median house price: $1,144,217
Change: Down 1.4 per cent
New median unit price: $737,080
Change: Down 0.5 per cent
House prices in Sydney fell 1.4 per cent over the June quarter, reaching a median of $1,144,217.
This is the second consecutive quarter of house price declines for the capital city, with the median dropping 4.5 per cent year-on-year.
Sydney unit prices fell to $737,080 over the June quarter, reflecting a 0.5 per cent quarterly decline and a 3.5 per cent annual drop.
Median weekly house and unit rent remained stable for Sydney at $550 per week.
What captured the headlines is that house values in some areas fell more than 10 per cent over the year, but this was made up by other locations that are more than holding their own.
New median house price: $882,082
Change: Down 1.8 per cent
New median unit price: $496,021
Change: Down 0.6 per cent
The headlines screamed: “Melbourne property prices have taken their biggest hit since 2012, falling by 1.8 percent in the past three months, with experts predicting prices will continue to slide.”
Yet the median house price in Melbourne saw a price increase of 0.5 per cent over the year.
Median unit prices in Melbourne declined 0.6 per cent over the June quarter to $496,021.
Median weekly house and unit rent remained stable for Melbourne at $430 and $410 per week respectively.
New median house price: $566,322
Change: Down 0.1 per cent
New median unit price: $379,186
Change: Down 1.2 per cent
The headlines for Brisbane were: “Brisbane house prices have fallen more than units this quarter but, as a capital city, it’s holding up better than most.”
The Domain report shows the median house price in Brisbane declined by a marginal 0.1 per cent over the June quarter, reaching $566,322.
Despite the quarterly fall, the median house price rose by 2 per cent year-on-year.
The median unit price in Brisbane fell by 1.2 per cent over the June quarter to $379,186.
Brisbane median unit rents decreased slightly to $370 per week while house rents remained flat at $400 per week over the quarter
Canberra property market
New median house price: $749,865
Change: Up 3.2 per cent
New median unit price: $415,414
Change: Down 1.2 per cent
Canberra’s property market performed admirably with the median house price having risen 6.2 per cent over the past 12 months, the second highest growth of all Australian capital cities behind Hobart.according to the Domain Report.
The median house price in Canberra increased 3.2 per cent over the June quarter, reaching $749,865.
Median unit prices in Canberra decreased to $415,414, reflecting a 1.2 per cent quarterly drop and an annual decline of 2.1 per cent.
Canberra’s median weekly house rents jumped to $550 while medium weekly unit rents remained steady at $450.
Perth property market
New median house price: $556,572
Change: Down 0.4 per cent
New median unit price: $379,038
Change: Up 3.4 per cent
Perth’s median house price has fallen again over the June quarter.
House prices in Perth declined a marginal 0.4 per cent over the June quarter, reaching a median of $556,572.
The rate of decline continues to ease with Perth’s median house price falling 1.0 per cent over the year a sign that the bottom may be near..
Unit prices in Perth increased by 3.4 per cent over the June quarter to reach a median of $379,038.
Perth unit values improved 1.7 per cent over the year.
Over the June Quarter, median weekly house rents dropped to $350 while medium weekly unit rents remained steady at $300.
Hobart property market
New median house price: $461,547
Change: Up 4.2 per cent
New median unit price: $370,085
Change: Up 6.1 per cent
The median house price jumped 4.2 per cent in Hobart to reach a new record high of $461,547 over the June quarter, marking a 15.9 per cent increase year-on-year making it Australia’s strongest market over the last year.
Median unit prices jumped 6.1 per cent in June, reaching a new record high of $370,085, soaring 22.6 per cent over the year.
Hobart’s median weekly house rents fell this quarter to $410 while medium weekly unit rents increased to $360.
Adelaide property market
New median house price: $534,832
Change: Up 0.5 per cent
New median unit price: $312,992
Change: Down 1.9 per cent
A marginal 0.5 per cent decline over the June quarter pulled the Adelaide median house price down to $534,832.
While the median house price in Adelaide increased 3.1 per cent over the year, annual growth has slowed compared to last year.
The median unit price in Adelaide declined 1.9 per cent over the June quarter to $312,992.
Despite the decline over the quarter, unit values increased marginally by 0.9 per cent year-on-year.
Adelaide remains one of the most affordable Australian capital cities to purchase a unit.
Median weekly house and unit rents remained stable for Adelaide at $375 and $300 per week respectively
Darwin property market
New median house price: $539,497
Change: Up 4.5 per cent
New median unit price: $326,126
Change: Up 2.7 per cent
The median house price in Darwin increased by 4.5 per cent over the June quarter, reaching $539,497.
Median unit prices in Darwin also increased to $326,126, reflecting a 2.7 per cent quarterly increase.
Darwin’s median weekly house rents fell 6.5 per cent to $500 over the June quarter.
Weekly unit rents also decreased to a median of $400, reflecting a 2.4 per cent quarterly drop.
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