Perth was officially the worst performing major housing market in the past year, with national real estate figures showing the median price slumped 1.1 per cent to $460,000, the only market to record a fall in that period.
Perth was officially the worst performing major housing market in the past year, with national real estate figures showing the median price slumped 1.1 per cent to $460,000, the only market to record a fall in that period.
But, by that measure, provided by the Real estate Institute of Australia, Perth remained the second most expensive housing market in Australia.
While Perth was the only negative performer for the year ending March 31, it was not the worst market in the March quarter, dropping 2.5 per cent from the end of December. Melbourne fell 8.4 per cent and Canberra slipped 6.8 per cent during March.
For the year ending March 31, Adelaide jumped 19.1 per cent to $362,100, Hobart gained 13.9 per cent to $335,000, Melbourne added 13.7 per cent to $432,500, Darwin was up 7.7 per cent $420,000, Canberra improved 6 per cent to $445,000 and Sydney was 5.9 per cent better at $554,000. Figures for Brisbane were not available.
The median house price revealed by the national body is higher than the preliminary figure of $457,000 rleased last month by the Real Estate Institute of WA last month which showed a 2.7 per cent drop fromn $470,000 for the quarter.
In other dwellings, Perth slumped 3.9 per cent to a median price of $365,000 for the quarter, a price which matched the comparable figure a year earlier. Other dwellings have had a difficult period across the nation, with only Darwin (4.5 per cent) and Adeliade (2 per cent) showing growth.
| City | Median | Change % (qtr) | Change % (year) |
| Sydney | $554,000 | -0.3 | 5.9 |
| Perth | $460,000 | -2.5 | -1.1 |
| Canberra | $445,000 | -6.8 | 6 |
| Melbourne | $432,500 | -8.4 | 13.7 |
| Darwin | $420,000 | 1.8 | 7.7 |
| Adelaide | $362,100 | 2 | 19.1 |
| Hobart | $335,000 | 1.5 | 13.9 |
Below is the full announcement:
Following a year of strong price increases in 2007, the Australian housing market has softened considerably since the beginning of 2008, according to March quarter house price data released today by the Real Estate Institute of Australia (REIA).
Prices for houses in Melbourne and Canberra, in particular, have fallen significantly in the first quarter 2008, while Sydney and Perth prices are also lower. Adelaide, Darwin and Hobart showed small increases in prices for houses.
'The impact of interest rate rises and inflation is clearly being felt in the housing market as median house prices are beginning to go into negative territory for the first time in some years,' said REIA President Noel Dyett.
Melbourne's median house price decreased by 8.4% from $472,300 in December to $432,000 in March. The Canberra median price fell by 6.8% from $477,500 in December to $445,000 in March. Sydney and Perth prices fell 0.3% and 2.5% respectively. Adelaide, Darwin, and Hobart registered higher house prices during the March quarter 2008, but the growth was marginal and nothing like that experienced during 2007.
'At the moment, there are many factors for consumers to consider as they make purchasing decisions. People are being bombarded everyday with uncertainty over inflation, interest rates, the cost of food and petrol, and as a result, the housing market is beginning to suffer. The uncertain economic conditions are affecting prices for both houses and other dwellings,' Mr Dyett added.
Other dwellings prices decreased during the March quarter in all States and Territories except the Northern Territory. The most significant decrease was recorded in Hobart where prices for other dwellings decreased 7.4%, from $270,000 in December to $250,000 in March.
Despite the decrease in house prices during the March quarter 2008, there were still strong increases recorded for the annual growth of prices for both houses and other dwellings, in particular in Adelaide where house prices increased 19.1% over the year, and the price of other dwellings increased 20.7%. The only decrease in prices over the year occurred in Perth with house prices decreasing 1.1% from the March quarter 2007.
Median prices are not yet available for Brisbane. These will be published in the Mortgage Choice/REIA Real Estate Market Facts report, together with a comprehensive analysis of median prices, median rents, vacancy rates and investment yields and returns for all capital cities on 9 June 2008.
