New data from the ABS for the December 2017 quarter shows a big change in the pattern of growth across Australia’s cities.
Residential property prices rose 5 per cent through the year to December quarter 2017, with growth easing from the September (+8.3 per cent) and June (+10.2 per cent) quarters 2017.
Sydney’s slump was buoyed by other states, including Hobart, which saw a rise of 3.9 per cent in the Residential Property Price Index (RPPI).
“Home prices in Hobart are now the fastest growing of any capital city. Sydney had consistently topped the list in recent years but has since slipped to fourth place in terms of price growth, said HIA Senior Economist, Shane Garrett.
“Tasmania’s capital had been stuck in the doldrums only a couple of years ago. Hobart’s impressive turnaround will give hope to other markets around Australia.”
Melbourne also saw a rise in RPPI, 2.6 per cent, while Sydney fell by .1 per cent and Darwin fell by 1.5 per cent.
Another change was in the total value of Australia’s 10 million residential dwellings increased $92.9 billion to $6.9 trillion. The median price of dwellings in Australia is now $686,700.
“History shows that house prices eventually grow fastest in the markets which have seen low growth in the recent past, said Mr Garrett.
“People forget that between 2002 and 2012, Sydney home prices grew more slowly than any other capital city. History shows how this can turn around in a short space of time,” he said.
During 2017, Hobart had the fastest rising dwelling prices with 13.1 per cent, followed by Melbourne at 10.2 per cent and Canberra at 5.7 per cent.
Price growth was more modest in Sydney, 3.8 per cent, Adelaide at 3.6 per cent and Brisbane at 2.1
