Residential price growth across Australia was lower than expected in May, with most capital cities experiencing a drop in median prices, a new report has revealed.
According to property website On The House, national house values grew by 0.36 per cent in May compared to 1.71 per cent in the previous quarter.
Median unit prices across Australia were reported to have fallen by 0.23 per cent after growing by 1.17 per cent in the previous quarter.
Sydney house values slowed in May with an increase of only 0.24 per cent compared to growth in the previous quarter of 4.72 per cent.
The ACT recorded a monthly growth rate of 0.55 per cent compared to 0.07 per cent in the previous quarter.
Brisbane recorded monthly growth of 0.41 per cent compared to 2.77 per cent in the previous quarter.
Meanwhile, five capital cities showed a monthly drop in house values: Perth fell by 1.9 per cent, Hobart by 0.82 per cent, Darwin by 0.53 per cent, Adelaide by 0.15 per cent and Melbourne by 0.03 per cent.
Unit values also dropped in many capital cities, with Hobart posting a monthly drop of 2.38 per cent followed by Perth with 1.21 per cent.
Melbourne, Brisbane and the ACT also reported falling unit values in May, with Melbourne showing a 0.07 per cent drop, Brisbane a 0.22 per cent drop and the ACT a fall of 0.28 per cent.
Three capital cities saw an increase in unit prices, with Sydney posting a rise of 0.27 per cent, Adelaide 0.64 per cent and Darwin 0.42 per cent.
On The House consulting analyst John Edwards said that the slower growth rates were a good sign for the economy.
“Housing markets, particularly Sydney, were moving to a boom-like performance,” he said.
“With any luck, the statistics will continue on this trend of lower rates of growth over the next few months.”