National property prices decline a further 2.4% in December quarter: ABS

National capital city residential property prices fell a further 2.4 percent in the December quarter 2018, according to figures released by the ABS.

It follows a 1.5% national decline in the September quarter 2018, taking prices down 5.1% over the year.

The December quarter decline was driven by Sydney more so than Melbourne.

Melbourne's 2.4% loss was consistent with its losses in the September quarter (2.4%), however Sydney's decline increased sharply, jumping to 3.7% in the December quarter from 1.5% in the September quarter.

Sydney's total annual decline now stands at 7.8%, followed by Melbourne's 6.4% losses and then some way back to Darwin where prices are 3.5% down.

Click here to enlarge the December quarter statistics.

Bruce Hockman, chief economist for the ABS, said Australia’s two largest cities continue to lead the fall in property prices.

"These falls follow a period of solid growth, where prices in Sydney rose 68 per cent and Melbourne rose 54 per cent, over the five years to December quarter 2017," Hockman said.

"While property prices are falling in most capital cities, a tightening in credit supply and reduced demand from investors and owner occupiers have had a more pronounced effect on the larger property markets of Sydney and Melbourne."

Hobart continued its strong property market, with gains of 0.7 percent over the December quarter.