Residential property prices fell 2.4 per cent in the December quarter 2018, according to figures released today by the Australian Bureau of Statistics (ABS). The total value of Australia’s 10.3 million residential dwellings fell by $133.1 billion to $6.7 trillion. The mean price of dwellings in Australia is now $651,100, and falling.
Plus the number of home transfers complete are trending down as sales volumes decline, and stock rises.
Chief Economist for the ABS, Bruce Hockman said: “Australia’s two largest cities continue to lead the fall in property prices. These falls follow a period of solid growth, where prices in Sydney rose 68 per cent and Melbourne rose 54 per cent, over the five years to December quarter 2017.”
Sydney property prices fell 3.7 per cent in the December quarter 2018 and have continued to fall since September quarter 2017, while Melbourne property prices recorded the fourth consecutive quarter of falls (-2.4 per cent).
Here are the annual trends. Hobart and Canberra are still in poisitve territory (but falling).
Mr. Hockman said: “While property prices are falling in most capital cities, a tightening in credit supply and reduced demand from investors and owner occupiers have had a more pronounced effect on the larger property markets of Sydney and Melbourne.”
Through the year growth in residential property prices fell 5.1 per cent in the December quarter 2018. Falls were recorded in Sydney (-7.8 per cent), Melbourne (-6.4 per cent), Darwin (-3.5 per cent), Perth (-2.5 per cent) and Brisbane (-0.3 per cent).
We also see continuing falls in the number of home transfers (the end result of sales). The last quarter of 2018 is still preliminary, but the trends are pretty clear now. Falls in Melbourne appear the most significant.
But Sydney is not far behind.
Other states also appear weaker (even Hobart, Adelaide and Canberra). Expect more home price falls ahead.
now $651,100.
