House prices continue to rise with double digit strength
Price rises in Sydney (2.3 per cent) and Melbourne (3.0 per cent) were partially offset by falls in Perth (0.8 per cent) and Darwin (1.4 per cent).
Bruce Hockman, ABS chief economist for the ABS, residential property prices, while continuing to rise in Melbourne and Sydney this quarter, have begun to moderate.
"Annual price movements ranged from -4.9 percent in Darwin to +13.8 percent in Sydney and Melbourne.
"These results highlight the diverse housing market and economic conditions in Australia's capital cities.
"Through the year growth in residential property prices reached 10.2 per cent in the June quarter 2017.
"Sydney and Melbourne recorded the largest through the year growth of all capital cities, both rising 13.8 per cent followed by Hobart, which rose 12.4 percent.
"The total value of Australia's 9.9 million residential dwellings increased $145.9 billion to $6.7 trillion.
"The mean price of dwellings in Australia rose by $12,100 over the quarter to $679,100."
“The annual pace of dwelling price growth across Australia’s eight capital cities moved up a gear to 10.2 per cent during the June 2017 quarter,” said HIA Senior Economist, Shane Garrett.
The ABS Residential Property Price Index released today, shows acceleration in the pace of dwelling price growth.
“Dwelling price growth is still strongest in Sydney and Melbourne. Hobart and Canberra also showed robust price growth.
“The markets most affected by the natural resources investment downturn like Perth and Darwin continue to be affected by falling dwelling prices.
“The bottom line is that unabated price increases are putting the dream of home ownership beyond the reach of more and more Australians.
“The ultimate solution to the affordability challenge is to make the delivery of our future housing stock easier and less costly.
“More flexibility in housing supply is the answer,” Mr Garrett concluded.
Between the June 2016 and the June 2017 quarters, Sydney dwellings experienced the largest increase in price (+14.4 per cent) followed by Melbourne (+13.4 per cent) and Hobart (+11.3 per cent).
There were also rises in dwelling prices in Canberra (+8.9 per cent), Adelaide (+5.0 per cent) and Brisbane (+3.5 per cent) over the same period.
Prices declined in both Perth (-3.5 per cent) and Darwin (-5.9 per cent) over the year to the June 2017 quarter.
“Falling Perth house prices are indicative of a weak economy, which is why the State Government must double down on its commitment to driving the State’s growth,” Property Council WA Executive Director Lino Iacomella said.
“A major focus must be on encouraging population growth through job creation.
“There is a plethora of major infrastructure projects in the pipeline since the reveal of the State Government’s METRONET plans.
“It is also imperative that the government pushes ahead with its election promise to establish Infrastructure WA, to plan and prioritize infrastructure projects," he said.