Sydney property prices fall dramatically

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Sydney has experienced the sharpest quarterly declines in house and unit prices on record, according to new statistics released by Domain Group.

The city’s median house price was $1.01 million at the end of 2015 after falling 3.1 per cent during the final three months of the year. Sydney’s median unit price also fell 2.8 per cent over the quarter, to $656,000.

Not only did prices fall at record speeds, according to Domain, but this was also the first decline in house prices since the June 2012 quarter and the first decline in unit prices since the March 2013 quarter.

Domain senior economist Andrew Wilson said the Sydney boom is now clearly over, with the market unlikely to record any notable house price growth until spring at least.

Canberra was Australia’s best-performing capital city in the quarter, with the median house price jumping 4.3 per cent to $652,000 – its biggest quarterly gain since December 2009. The median unit price also rose 0.8 per cent to $405,000.

Hobart house prices surged 7.9 per cent to $360,000 in the December quarter, despite growing only 5.8 per cent in the previous five years. However, unit prices fell 3.3 per cent to $268,000.

Adelaide reported growth in both sectors, with the median house price up 1.8 per cent to $494,000 and the median unit price up 3 per cent to $310,000.

Melbourne also experienced a double shot of growth, with houses climbing 1.8 per cent to $719,000 and units climbing 1.3 per cent to $446,000.

In Brisbane, the median house price increased 1.5 per cent to $511,000, while the median unit price decreased 1.1 per cent to $360,000.

Perth house prices fell 0.8 per cent to $585,000 – the fourth consecutive quarterly fall and the lowest result since the March 2013 quarter. However, unit prices rebounded 1.5 per cent to $389,000.

Darwin went backwards in both sectors, with house prices falling 2 per cent to $637,000 and unit prices falling 0.4 per cent to $407,000.

[Related: Housing downturn poses 'major downside risk']

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