The latest Australian Bureau of Statistics (ABS) House Price Index reveals house price growth eased slightly during the September quarter, according to the Housing Industry Association (HIA).
“Capital city established house prices increased by 1.9 per cent during the September quarter compared with the previous three-month period.
Annual growth now stands at 7.6 per cent nationally. The latest figures show that the pace of house price growth has eased over the last few months,” HIA senior economist Shane Garrett said.
“The fact that house price growth was at a modest pace during the September quarter undermines recent assertions that price trends in the market are being driven by speculation.
“It is no coincidence the strongest price growth is occurring in cities where constraints on new land supply are most severe, like Sydney and Perth. At a time when population growth is so strong and demand for new housing is so high, it is vital that unnecessarily onerous restrictions on new home building are removed as a priority,” he urged.
“Nevertheless, the streak of positive price growth over the last 12 months is likely to boost housing renovations activity and today’s house price data is welcome in this context.”
During the September 2013 quarter, established house prices increased fastest in Sydney (up 3.6 per cent). Prices also rose by 1.9 per cent in Melbourne, 1.4 per cent in Hobart, 1.2 per cent in Brisbane, 0.4 per cent in Darwin and 0.2 per cent in Perth. Established house prices declined by 1.2 per cent in Canberra and 0.6 per cent in Adelaide compared with the previous quarter.
Over the September 2013 quarter, project (new) house prices increased fastest in Sydney (up 1.8 per cent). Price increases also occurred in Perth (up 1.5 per cent), Darwin (up 0.6 per cent), Adelaide (up 0.2 per cent) and Hobart (up 0.2 per cent). Project house prices declined in Melbourne (down 0.5 per cent), Brisbane (down 0.3 per cent) and Canberra ( down 0.3 per cent).