Properties in Perth and Hobart have failed to increase in price during the June quarter despite the Real Estate Institute of Australia believing house prices are currently underpinned by a "chronic" housing shortage.
The lack of interest in Perth and Hobart is even affecting rent, with prices for Hobart rental properties falling by 5.7 per cent when compared to the same time last year. Perth also suffered a decrease in rental prices for a three-bedroom house, falling 4.2 per cent.
Nationwide, the weighted average house price to live in a capital city increased two per cent when compared with the March quarter, to $617,232. Sydney’s median house price was found to be the highest at $811, 837, and Hobart the lowest, with a median house price at $380,000.
The Real Estate Institute of Australia believes a housing shortage is being driven in part by population growth and constraints on housing supply. In releasing the June 2014 Bendigo Bank/REIA Real Estate Market Facts report, REIA president Peter Bushby said this concern is also echoed by many Aussie developers and it may continue for the next 20 years, owing to years of under-building.
“Some recent reports have suggested Australian houses may be over valued and proponents of this argument point to historically low interest rates that are driving lending,” Mr Bushby said.
“While REIA recognises the role that interest rates play in relation to house prices, it has long argued that prices are also underpinned by a chronic housing shortage brought about by population growth and constraints on housing supply."
Mr Bushby added that the report does show a good overall trend relating to median house prices in that results are not uniform across the nation, with the greatest increase in house prices seen in the eastern states.
“While Sydney and Melbourne house prices have received a lot of media attention lately, the report showed solid growth for Brisbane, with a quarterly increase of 2.2 per cent seeing the median house price now at $470,000," he said.
“Small but good results were posted for Adelaide and Canberra, each recording quarterly increases of 0.8 per cent and 0.9 per cent, with Darwin seeing an increase of 0.1 per cent.”