House prices continue to rise around the country, despite a slight drop in the March quarter, according to a new report released this week by the Real Estate Institute of Australia (REIA).
The Bendigo Bank/REIA Real Estate Market Facts report shows that the Australian weighted average median house price for the eight capital cities fell 0.2 per cent to $534,015.
Sydney, Perth and Darwin recorded increases over the quarter.
REIA President Peter Bushby noted that Sydney continues to have the highest median house price across all capitals at $673,681 – 26.2 per cent above the weighted average.
“The Brisbane median house price fell 2.3 per cent during the March quarter to $430,000, Melbourne fell 0.9 per cent and Canberra had the biggest drop, down by 8.7 per cent”, Mr Bushby said.
Hobart remains the capital with the lowest median house price.
“However, compared to the same time last year, the figures are positive as the Australian weighted average median house price rose 4.0 per cent and with the exception of Canberra which fell 7.2 per cent, prices increased in all capital cities,” Mr Bushby added.
Darwin recorded the largest jump for the year, up by 7.6 per cent, while the median house price in Melbourne rose 4.8 per cent.
The weighted average median price for other dwellings for the eight capital cities also fell by 0.9 per cent over the March quarter to $434,601 but increased 1.7 per cent compared to the March quarter of 2012.
In the rental market over the quarter, median house rents increased in all capital cities.
Mr Bushby noted that in comparison with the March quarter 2012, Hobart was the only capital to record a fall in median house rents.
“Compared to the same time last year, Darwin and Perth recorded the largest increases in median rents for other dwellings, up by 18.0 per cent and 12.5 per cent respectively.”
He also pointed out that over the March quarter, Sydney and Adelaide recorded decreases in vacancy rates, down 0.1 percentage points for both capitals.
“With a vacancy rate of 1.8 per cent, Sydney has the tightest rental property market and with a rate of 4.9 per cent, Hobart has the largest oversupply of rental properties”, he concluded.