Real Estate Institute of Australia‘s (REIA) latest Real Estate Market Facts report revealed that property prices across capital cities in the country declined during the June quarter, with the weighted average median prices trending lower by 0.8% for houses and 0.3% for other dwellings.
In dollar amounts, the weighted average median price for houses for the eight capital cities dropped to $765,098 over the quarter, with prices declining in each save for Brisbane, Adelaide, and Hobart.
REIA President Malcolm Gunning said the weighted average median price for other dwellings decreased to $590,935 during the same period, with prices sinking in all capital cities except for Melbourne, Brisbane, Hobart, and Darwin.
He noted that Canberra saw the largest fall in house prices, while Adelaide registered the biggest decrease in other dwellings. Moreover, the capital of South Australia was observed to have both the lowest median price for houses at $471,000 and the lowest median price for other dwellings at $354,167.
“Over the quarter, the median rent for three-bedroom houses increased in Canberra and Darwin, remained steady in Perth and, decreased in Sydney, Melbourne, Brisbane, Adelaide, and Hobart. The median rent for two-bedroom other dwellings increased in Canberra and Hobart, remained steady in Perth and decreased in Sydney, Melbourne, Brisbane, Adelaide, and Darwin. Hobart had the largest increase while Brisbane had the largest decrease,” Gunning said.
Examining occupancy figures, the report stated that the weighted average vacancy rate for the eight capital cities sank to 2.5%, signaling a tighter rental market. Canberra had the tightest market, with a vacancy rate of 0.8%.
Gunning, meanwhile, cited weakening loan numbers, which can be associated with the downward trend in value.
“Over the past 12 months, loan numbers have decreased by 3.8% across the country with declines in all states and territories except Tasmania. The largest decrease of 13.6% was in Western Australia. In Sydney and Melbourne – the two cities which have had the largest price increases over the past few years – the drop in loans is attributable to APRA restrictions on investment loans and more stringent home lending criteria.”