Residential property price growth is showing early signs of moderating, according to the Housing Industry Association.
Annual growth reached what looks to be a cyclical peak rate of 10.9% a year in the March 2014 quarter, says association economist Diwa Hopkins. This rate eased to 10.1% in the June quarter.
“While it’s too early to call a trend, the signs are mounting that price growth is easing back to a more sustainable pace,” says Hopkins.
The latest update to the Australian Bureau of Statistics Residential Property Price Indexes shows price growth moderated in the June quarter with capital city prices up by 1.7%.
“While this pace was slightly faster than in the March quarter, this growth is more modest compared with what occurred during mid to late 2013,” Hopkins says. “During that period, residential property prices were increasing between 2% and 4% per quarter.”
Over the June 2014 quarter, residential property prices increased fastest in Sydney (+3.1%).
Price increases also occurred in Brisbane (+1.8 %), Melbourne (+1.3%), Adelaide (+1%), Canberra (+0.8%), Darwin (+0.7%) and Hobart (+0.3%). Property prices declined by 0.3% in Perth.
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