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It was always predicted to happen and now the numbers are showing that the growth period for one of Australia’s largest markets is over.
Sydney, whose median house price is still over $1.1 million, reported the largest annual fall since 2008 after a 1.4 per cent drop in prices over the June quarter and a 4.5 per cent drop annually, digital property portal Domain reported.
The Domain June Quarter House Price Report showed a decline for both Sydney houses and apartments, with the steepest annual drop in unit prices since 2006 after a quarter drop of 0.5 of a percentage point and annual drop of 3.5 per cent.
Domain data scientist Dr Nicola Powell said that the softening conditions were not uncommon in cities where the median is high comparative to income.
“With more choice and less urgency, there are fewer active buyers in the market, and those who are in the market are being restricted by tightening lending standards and the availability of credit,” Dr Powell said.
Nationally, the median house price fell by 1.0 per cent over the quarter and the year to hit $802,077, and the decline is the first annual drop since June 2012.
The national unit median price also declined over the quarter by 0.4 of a percentage point and 2.2 per cent over the year for a median of $554,504, and is the first national unit decline since December 2011.
Median house prices in Melbourne continued to grow annually by 0.5 of a percentage point despite a June quarter decrease of 1.8 per cent.
Unit prices in Melbourne also declined in the quarter by 0.6 of a percentage point but did see a growth of 0.9 of a percentage point annually.
Brisbane saw a rise in house prices by 2 per cent year-on-year despite a marginal drop over the quarter of 0.1 of a percentage point. Meanwhile, unit prices continued to fall, with a 1.2 per cent decrease over the quarter and a 6.4 per cent decrease annually.
Canberra house prices grew by 3.2 per cent over the quarter, representing a growth of 6.2 per cent annually, while unit prices decreased by 1.2 per cent over the quarter and 2.1 per cent annually.
Adelaide’s house prices continue to grow annually, with a 3.1 per cent growth recorded, despite a 0.5 of a percentage point decline over the quarter.
Units in Adelaide fell by 1.9 per cent over the quarter, representing the first price fall over the quarter since 2017, and there was still an increase of 0.9 of a percentage point over the year, making the capital one of the most affordable places to buy a unit.
Perth houses fell by 0.4 of a percentage point over the quarter and a 1.0 per cent decline over the year. Meanwhile, unit prices increased by 3.4 per cent over the year and pushed the capital to a 1.7 per cent year-on-year rise, the first in three and a half years.
Hobart house and unit prices reached record highs over the quarter, with a respective 4.2 per cent and 6.1 per cent increases over the quarter.
Darwin experienced the biggest annual drop in June with an 11.8 per cent drop in house prices; however, unit prices increased by 2.7 per cent over the quarter.
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