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Property prices reflecting state economies: REIA

REIA has released the REIA Real Estate Market Facts for the September quarter 2016 which shows that the weighted average capital city median price increased by 1.4% for houses and 1.6% for other dwellings.

“The weighted average median house price for the eight capital cities is now $712,776. Reflecting the differing fortunes of state economies, over the quarter, the median house price increased in Sydney and Melbourne while the rest of the capital cities recorded decreases. Compared to the corresponding quarter of the previous year, the median house price went up by 2.2% and, with the exception of Perth, Canberra and Darwin, all the capitals contributed to the increase”, said Mr Malcolm Gunning, President of the REIA.

“At $1,076,878, Sydney’s median house price is the highest among the capitals whilst Hobart retains the lowest at $385,000 – the figure is 46% lower than the national average.”

“The weighted average median price for other dwellings for the eight capital cities was $558,565 in the September quarter 2016. Sydney, Melbourne and Perth contributed to the quarterly increase while the rest of the capitals had decreases. When compared to the same time last year, the weighted average eight capital cities median price for other dwellings increased by 2.0%. Increases were recorded in Sydney, Melbourne, Adelaide and Canberra.”

“Over the quarter, median rents showed varied results. In Canberra rents remained unchanged despite the vacancy rate dropping to 1.3 per cent during the third quarter of 2016. Rents in Adelaide and Melbourne increased whilst in Perth, Darwin and Hobart they decreased. In Sydney rents in some locations remained unchanged whilst in others they decreased and in others increased.”

“Over the last three years the proportion of investors purchasing houses has increased and at the same time developers have responded to the increased demand by building more apartments. This has resulted in falling rents. The ABS’s CPI figures support this. The September quarter 2016 CPI shows that the annual increase in rents to September has been the lowest since December 1994.”

“Providing further evidence that the current taxation arrangements which provide many Australians with the opportunity to invest in property adds to the housing supply and keep rents lower than they would otherwise be”, concluded Mr Gunning.

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