The September quarter saw property prices fall in most capital cities, data from Australian Property Monitors showed today.
Brisbane and Perth saw house prices fall furthest over the quarter, at rates of 5.2 and 3.4 per cent respectively. Units lost most value in Perth (4.2 per cent), followed by Canberra (2.9 per cent) and Melbourne (2.3 per cent).
Australian Property Monitors senior economist Liam OHara said the softening in prices was easing affordability constraints, albeit slightly.
“Over the year Sydney witnessed a 3.1 per cent drop in median house prices which is an approximate saving of $17,000 for potential buyers and investors,” he said.
“Coupled with the recent increase to the first home owners grant and substantially lower interest rates, the affordability situation looks somewhat bearable given current over-inflated asset prices,” he said.
Mr OHara said he expected property prices to continue to flatten or even fall moderately over the next six months which should be positive for potential buyers however worse economic growth than expected would pose some uncertainty.
“If economic growth continues to decline, feeding into significantly higher unemployment, then the outlook is less than certain. Property prices and activity will drop and further official interest rate cuts may be needed.”
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