Melbourne leads nationwide drop in house prices in second half of 2011: Residex

Australian house prices deteriorated considerably over the last six months of 2011, according to Residex, with Melbourne showing the greatest deterioration over this period.

In its latest report, Residex data reveals that across Australia house prices declined by 3.18% in 2011, compared with an annual decline of just 1.19% at the end of June 2011. 

Six month ago, Melbourne house prices were actually up 1.58% on annualised basis, but the latest report shows they are now down 3.28% over the past 12 months to a median value of $574,000. 

The rate of decline in Sydney house prices has also picked up, although the city recorded the smallest drop of the major capital city markets, with values falling 2.54% for the year to a median of $656,000. Six months ago Sydney house prices were down just 0.47% for the year. 

December figures suggest the decline in Brisbane house prices appears to be slowing, with the city recording an annual fall of 6.7% over 2011 to $427,500. Six months ago Brisbane prices were down 5.66% for the year. 

Perth house prices declined by 3.76% for the year, having been down 2.21% for the year six months ago, while Adelaide price falls accelerated, falling 3.17% over 2011. Adelaide prices were down 1.38% at the end of June 

 

Annual change in house prices as of December 2011

Annual change in house prices as of June 2011

Melbourne

-3.28%

 

1.58%

Sydney

-2.54%

 

-0.47%

Brisbane

-6.70%

 

-5.66%

Perth

-3.76%

 

- 2.21%

Adelaide

-3.17%

 

-1.38%

Australia

-3.18%

-1.19%

 Source: Residex

While Melbourne house prices continued to fall in 2011, country Victoria prices rebounded, rising by 3.38% in the year to median of $332,000. The only other markets to record price increases over the year were Hobart (up 0.32% to $389,000) and country South Australia, where prices increased by 0.49% during 2011 to $264,000. 

According to Residex, sales activity across Australia dropped by 6.32% in 2011, however buyers showed interest in Melbourne, Canberra and Darwin, where sales increased by 14.95%, 7.38% and 7.30% respectively. 

Area

Median house price

10 years % p.a.

Year ending Dec 2011

Last quarter

Last month

ACT

$526,500

8.47%

-2.03%

-1.84%

0.51%

Adelaide

$395,500

8.34%

-3.17%

-0.43%

0.79%

SA Country

$264,000

8.60%

0.49%

3.09%

2.42%

Brisbane

$427,500

8.65%

-6.70%

-2.54%

-0.49%

QLD Country

$367,000

8.75%

-3.41%

0.09%

-0.67%

Darwin

$484,500

10.15%

-6.11%

-1.25%

-1.70%

Northern Territory

$462,000

10.21%

-4.72%

-0.98%

-1.51%

Hobart

$389,000

10.94%

0.32%

1.14%

2.81%

TAS Country

$269,500

10.43%

-1.89%

-0.30%

0.03%

Melbourne

$574,000

8.07%

-3.28%

-1.01%

-0.10%

VIC Country

$332,000

8.19%

3.38%

1.76%

-0.89%

Perth

$469,000

9.52%

-3.76%

0.41%

-1.11%

WA Country

$350,000

9.66%

-2.72%

1.75%

-2.11%

Sydney

$656,000

4.97%

-2.54%

-1.78%

-0.24%

NSW Country

$334,500

6.31%

-2.78%

-1.09%

0.40%

Australia

$429,500

8.05%

-3.18%

-1.00%

-0.72%

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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