The price growth wedge emerging between Sydney and the rest of the county: ABS residential index

The latest ABS Residential Property Price Index indicated a further moderation in annual national price growth to 6.8%, down from the 10.8% peak at the start of 2014. 

House price growth was higher than for units - 7% and 6.1% respectively. 

Westpac's economist Matthew Hassan noted the "growth wedge" between Sydney and the rest of the nation widening.

Whereas dwelling prices rose 12.2% in Sydney in 2014, gains were much milder across other capitals ranging from 5.3% in Brisbane, to 4.5% in Melbourne, 2.5% in Adelaide and 1.2% in Perth.

"Unit prices were noticeably weaker in the resource state capitals of Brisbane and Perth in Q4 although 'thin' markets mean price measures for these segments are typically more volatile and less consistent across providers," Hassan said.

"The summer break makes housing market data problematic over the month of January.

"With most indicators generally taking a month or more to produce that means we will be largely flying blind until mid-March.

"Even then, monthly volatility can make it difficult to pinpoint underlying momentum.

"So far for 2015 the only marginally useful data is from auction activity.

"While the number of auctions is still very low (about a third of a typical weekly level) clearance rates have remained high over the first two weeks of February, particularly in Sydney (over 80%).

"The second half of February – the unofficial season opening – will start to provide a better guide to conditions and the extent to which they have responded to the RBA's latest interest rate cut."