While property prices are still rising in most Australian cities, the rate of growth has subdued into more sustainable territory.
According to the latest Australian Property Monitors’ Quarterly Housing Report Sydney is still the strongest property market in the country, however the 5.1 per cent growth rate from December 2013 has dropped to 3.1 per cent over the March quarter.
“The Sydney boom has well and truly faded with house and unit price growth the lowest rate since March last year,” said Dr Andrew Wilson, Senior Economist, Australian Property Monitors.
Sydney unit prices were up by 2.6 per cent over the March quarter, again a softening from the 3.2 per cent growth recorded over the previous three month period.
“The moderation of boom-time results in Sydney can be expected to continue as emerging affordability barriers and declining investor activity impacts the market,” Dr Wilson said.
Across the country, median unit prices increased by just 1.3 per cent and median house prices increased by 2.0 per cent.
Melbourne was the second best performer with median house prices increasing 2.8 per cent over the March quarter while unit growth was relatively flat at 0.2 per cent.
Brisbane and Adelaide house prices increased modestly by 0.9 and 1.3 per cent respectively.
Perth, Hobart, Canberra and Darwin all recorded flat or falling house prices during the March quarter.