Sydney and Darwin lead increases in asking prices: SQM

Vendor confidence increased over the March quarter driven by strong performance in Sydney and Darwin, according to SQM research.

Vendors across the capital cities were confident enough to lift asking prices, bringing the national capital city asking prices up 1.3%.

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But although the average asking price is up, Sydney, Darwin and Perth were the only cities with positive growth in asking prices.

Over the quarter, asking prices increased 4% in Sydney, 3.9% in Darwin and 0.1% in Perth. All other capital cities recorded reductions.

Canberra decreased asking prices by 3.8%, the biggest drop for all capital cities. Unit asking prices dropped 1.3%.

SQM’s Louis Christopher says it is clear Canberra’s market conditions remain weak.

“Overall the market was confident for the quarter however I note that there was a little more caution in the month of March,” Louis Christopher says.

“Melbourne is still recording some weakness and that goes with Canberra as well, which has most likely been affected by cuts in the Federal budget. Sydney and Darwin are leading the charge.

“However if it were not for the strong results in Sydney, it is most likely the national average would be recording market weakness for the quarter.”

In Melbourne, asking prices for house dropped 0.7% over the quarter while asking prices for units rose 1.1%.

Unit asking prices across the capital cities dropped 0.4%.

Hobart had the second strongest increase in asking prices for units, up 4.8%.

Alistair Walsh

Alistair Walsh

Deutsche Welle online reporter

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