Capital gain no longer accelerating, slowdown will be welcomed by policy makers: RP Data’s latest statistics

While it seems that the national growth rate has moderated somewhat, a number of capitals are still recording solid growth figures.

However, the month of September was largely flat across the board, according to RP Data. Over the three months to September 2014, Sydney remained the stand out, recording 4.1% price growth, while Hobart dropped by 1.0%.

RP Data national research director Tim Lawless said that September’s overall growth across Australia, at 2.9%, was indeed driven by Sydney and Melbourne. Melbourne recorded 3.7% growth, while Adelaide also saw a strong uptick of 3.1%.

"The annual rate of appreciation in dwelling values has actually been moderating since reaching a peak in April this year," said Lawless.

"The fact that the annual trend of capital growth has been trending lower is an important factor to note as it highlights that the rate of capital gain is no longer accelerating," he said.

He did not that housing market conditions remain buoyant, but said that the 12 month trend is drifting lower since an 11.5% peak in April.


"A moderating annual trend, as well as the relatively flat September result, is likely to be welcome news to policy makers and potential buyers after the winter months recorded the largest capital gain since 2007.

"The softer September result is also likely to be seen as a positive indicator by the Reserve Bank which has recently raised concerns about the level of value growth and speculative investing in the Sydney and Melbourne housing markets," Lawless said.

CAPITAL CITY SEPTEMBER MONTHLY GROWTH, MEDIAN DWELLING

Sydney
Month: 0.8%
Quarter: 4.1%

Year on year: 14.3%

Median: $655,000

Melbourne
Month: -0.8%
Quarter: 3.7%

Year on year: 8.1%

Median: $535,000

Brisbane
Month: 0.7%
Quarter: 0.6%

Year on year: 6.4%

Median: $440,000

Adelaide
Month: 0.9%
Quarter: 3.1%

Year on year: 5.8%

Median: $390,000

Perth
Month: -0.4%
Quarter: -0.6%

Year on year: 3.2%

Median: $515,000

Hobart
Month: -0.3%
Quarter: -1.0%

Year on year: 4.6%

Median: $300,000

Darwin
Month: -1.0%
Quarter: 1.4%

Year on year: 1.7%

Median: $545,000

Canberra
Month: -0.5%
Quarter: 1.4%

Year on year: 1.7%

Median: $500,000