Latest data confirms cooling market

Latest data confirms cooling market

Cooling property market
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Property prices have declined in half of Australia’s capital cities over the past three months, according to new data.

The RP Data-Rismark Home Value Index found that the capitals averaged 1.1 per cent price growth for the three months to July 31 and 10.2 per cent growth over the previous 12 months.

All eight capitals recorded annual increases, although Adelaide, Hobart, Brisbane and Perth went backwards over the quarter.

Adelaide prices fell by 2.6 per cent over the quarter and increased by 4.3 per cent over the year.

Hobart had a 1.2 per cent quarterly decline and a 1.0 per cent annual gain.

Brisbane dropped 0.4 per cent in the quarter and jumped 6.9 per cent during the year.

Perth prices experienced a 0.1 per cent quarterly decrease and a 3.0 annual increase.

Canberra led the way during the May-July period as prices rose 2.1 per cent, although it posted annual growth of only 1.9 per cent.

Sydney grew 2.0 per cent over the quarter and 14.8 per cent over the year.

Melbourne had a 1.8 per cent quarterly increase and an 11.0 per cent annual increase.

Darwin added 0.8 per cent during the quarter and 6.5 per cent during the year.

RP Data research director Tim Lawless said the growth trend had eased from last year’s peak – probably due to rising affordability problems and low rental yields in Australia’s largest cities.

“With interest rates remaining low and fixed rates seeing further downwards pressure, we are expecting that capital gains will continue into the foreseeable future,” he added.

“What is likely though is that the rate of capital gain will continue to reduce, particularly in those cities where affordability constraints are the most significant and rental yields are the lowest.”

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