Residential house prices took a hit in the September quarter, with average capital city values falling 3.7 per cent, new research has found.
According to the Real Estate Institute of Australia’s (REIA) Real Estate Market Facts report, the weighted average median house price for the eight capital cities fell to $521,238 during the September quarter.
Sydney remains the nation’s most expensive capital to own a home, with an average median house price of $637,600 – 22.3 per cent above the weighted capital cities average.
Hobart was found to be the most affordable capital city, recording an average median house price of $345,000, which is 33.8 per cent below the weighted capital cities average.
“Over the year, all Australian capital cities recorded decreases in median house prices with the exception of Melbourne which increased 1.4 per cent,” REIA president Pamela Bennet said.
“Compared to the September quarter of the previous year, the largest decreases in median house prices were evident in Hobart, down 9.2 per cent, and in Perth and Darwin which both recorded decreases of 8.2 per cent.”
The weighted average median price for other dwellings for the eight capital cities is $424,176. This figure decreased 1.4 per cent over the quarter and 0.1 per cent over the year.
With the exception of Canberra, where prices increased 1.2 per cent over the quarter, all Australian capital cities recorded decreases in the median price for other dwellings.
Rents for three bedroom houses remained unchanged for most Australian capital cities. The only capital cities to record increases were Perth and Darwin, up 2.6 per cent and 0.9 per cent, respectively.
"Although the September quarter data does not reflect the recent rate cuts yet, we welcome the Reserve Bank’s decision to decrease rates for both November and December, for a total 0.5 per cent decrease,” Ms Bennet said.
“We anticipate this will bring positive results for the residential property market by improving the level of activity in the market, in particular, the level of first home buyers entering the market.”