Adelaide, Perth median house prices flat over June 2017 quarter

Adelaide, Perth median house prices flat over June 2017 quarter
Adelaide, Perth median house prices flat over June 2017 quarter

Median house prices over the June 2017 quarter increased nationwide with the exception of Adelaide and Perth, according to the latest REIA Real Estate Market Facts.

The report found the weighted average capital city median price increased by 1.8 percent for houses and 2.6 percent for other dwellings.

Malcolm Gunning, president, Real Estate Institute of Australia said the weighted average median price for houses for the eight capital cities increased to $768,227, with prices increasing everywhere except for Adelaide and Perth.

“The weighted average median price for other dwellings increased to $604,456, again driven by median price increases in Melbourne and Sydney and, to lesser extent, in Darwin, Adelaide and Hobart,” he said.

“The largest increase in the median price for houses was seen in Hobart at 4.9 per cent, while for other dwellings Darwin’s 9.3 per cent increase was the highest.

“In contrast median house prices decreased in Adelaide and Perth and median prices for other dwellings decreased in Brisbane, Canberra and Perth,” he said.

"Over the quarter, median rents for three-bedroom houses decreased in most capitals except for Canberra.

“Adelaide had the largest decrease at 2.9 percent, with the other capital cities having similar declines. Median rents for two-bedroom other dwellings increased in Canberra, Hobart and Sydney. In Melbourne, Adelaide, Perth and Darwin median rents for other dwellings declined with Brisbane having the highest decrease of 5.1 percent.

“The weighted average vacancy rate for the eight capital cities remained steady at 2.8 percent during the June quarter. Both Darwin and Perth continue to have high vacancy rates at 7.3 per cent and 6.9 per cent respectively, while Canberra recorded the largest decrease of 0.4 percentage points. Perth was the only capital city to see an increase with a rise of 0.8 per cent,” he said.

"Both investor finance and owner-occupied housing finance, excluding re-financing, showed strong increases of 12.8 percent and 13.6 percent respectively over the quarter.

“Whilst both increased, over the last eight quarters we have seen owner occupied financing greater than that of investors. The decline in investors is in response to the more rigid lending criteria imposed by APRA on investment property lending which is cooling the residential markets, particularly in Melbourne and Sydney.

“The past level of investor activity is flowing through in higher vacancy rates than has been the case for the last two years,” Mr Gunning said.

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