Dear guys,
Article in today's fin review.
Cheers,
Sunstone.
P R O P E R T Y
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Housing prices plateau
Dec 5 12:26
Jim Parker
housing prices
Q2 2002 Q3 2002 %yr 2002
Australia 4.9 3.8 17.3
Sydney 4.2 5.8 21.0
Melbourne 7.7 0.5 10.7
Brisbane 4.2 5.2 25.4
Adelaide 4.1 5.6 19.9
Perth 2.8 2.5 12.0
The pace of the growth in Australian house prices eased in the September quarter, mainly due to a severe slowdown in the Melbourne market, but the annual rate of increase remained near its highest levels since the late 1980s.
The Australian Bureau of Statistics said on Thursday the weighted average price index for established houses in Australia's eight state and territory capitals rose 3.8 per cent in the September quarter, down from 4.9 per cent in the June quarter.
However, the annual pace of increase in prices of 17.3 per cent remained only slightly below the 18.9 per cent rate registered in the previous quarter, which was the biggest year-on-year rise since the boom of 1989.
Also, most of the apparent slowdown in price growth in the latest quarter was due to the previously supercharged Melbourne market hitting the wall. Prices in most of the other state and territory capitals continued to accelerate.
The wealth effect from the phenomenal growth in house prices in recent years has accounted for much of the strength in consumer spending, which in turn has helped to buttress the Australian economy from the weak world economy.
Anecdotal evidence from falling auction clearance rates in recent weeks is that the market has topped out as sellers' more optimistic expectations meet increasing resistance from buyers , but neither is demand completely falling away.
The housing boom has been fed by interest rates at three-decade lows, strong employment growth and money coming out of the sharemarket into property.
Accounting for most of the slowdown in house-price inflation in the September quarter was the Melbourne market. were prices rose only 0.5 per cent on average, well down from the hectic pace of 7.7 per cent in the previous quarter. The Perth market also slowed, although less markedly, from 2.8 per cent to 2.5 per cent.
However, the pace of price rises in all the other capitals accelerated, according to the ABS. Sydney led the way with a 5.8 per cent gain, from 4.2 per cent previously.
Adelaide was the second best performing city, with a 5.6 per cent rise in prices over the quarter compared with 4.1 per cent previously. Brisbane prices also rose strongly (5.2 per cent from 4.2 per cent), as did Canberra (4.8 per cent from 2.4 per cent.)
Among the smaller capitals, Hobart prices rose 2.8 per cent (from 2.0 per cent in the previous quarter), while Darwin prices picked up 2.7 per cent (against 0.5 per cent previously).
The best performing capital city over the past year has been Brisbane, with a 25.4 per cent gain in prices, followed by Sydney (+21 per cent), Adelaide (+19.9 per cent), Canberra (+18.5 per cent), Perth (+12.0 per cent), Melbourne (+10.7 per cent), Hobart (+10.4 per cent) and Darwin (+7.7 per cent).
Article in today's fin review.
Cheers,
Sunstone.
P R O P E R T Y
--------------------------------------------------------------------------------
Housing prices plateau
Dec 5 12:26
Jim Parker
housing prices
Q2 2002 Q3 2002 %yr 2002
Australia 4.9 3.8 17.3
Sydney 4.2 5.8 21.0
Melbourne 7.7 0.5 10.7
Brisbane 4.2 5.2 25.4
Adelaide 4.1 5.6 19.9
Perth 2.8 2.5 12.0
The pace of the growth in Australian house prices eased in the September quarter, mainly due to a severe slowdown in the Melbourne market, but the annual rate of increase remained near its highest levels since the late 1980s.
The Australian Bureau of Statistics said on Thursday the weighted average price index for established houses in Australia's eight state and territory capitals rose 3.8 per cent in the September quarter, down from 4.9 per cent in the June quarter.
However, the annual pace of increase in prices of 17.3 per cent remained only slightly below the 18.9 per cent rate registered in the previous quarter, which was the biggest year-on-year rise since the boom of 1989.
Also, most of the apparent slowdown in price growth in the latest quarter was due to the previously supercharged Melbourne market hitting the wall. Prices in most of the other state and territory capitals continued to accelerate.
The wealth effect from the phenomenal growth in house prices in recent years has accounted for much of the strength in consumer spending, which in turn has helped to buttress the Australian economy from the weak world economy.
Anecdotal evidence from falling auction clearance rates in recent weeks is that the market has topped out as sellers' more optimistic expectations meet increasing resistance from buyers , but neither is demand completely falling away.
The housing boom has been fed by interest rates at three-decade lows, strong employment growth and money coming out of the sharemarket into property.
Accounting for most of the slowdown in house-price inflation in the September quarter was the Melbourne market. were prices rose only 0.5 per cent on average, well down from the hectic pace of 7.7 per cent in the previous quarter. The Perth market also slowed, although less markedly, from 2.8 per cent to 2.5 per cent.
However, the pace of price rises in all the other capitals accelerated, according to the ABS. Sydney led the way with a 5.8 per cent gain, from 4.2 per cent previously.
Adelaide was the second best performing city, with a 5.6 per cent rise in prices over the quarter compared with 4.1 per cent previously. Brisbane prices also rose strongly (5.2 per cent from 4.2 per cent), as did Canberra (4.8 per cent from 2.4 per cent.)
Among the smaller capitals, Hobart prices rose 2.8 per cent (from 2.0 per cent in the previous quarter), while Darwin prices picked up 2.7 per cent (against 0.5 per cent previously).
The best performing capital city over the past year has been Brisbane, with a 25.4 per cent gain in prices, followed by Sydney (+21 per cent), Adelaide (+19.9 per cent), Canberra (+18.5 per cent), Perth (+12.0 per cent), Melbourne (+10.7 per cent), Hobart (+10.4 per cent) and Darwin (+7.7 per cent).
