Australia’s housing market is slowing after years of rapid growth, but the value of the nation’s 10 million homes is nearing $7 trillion, taking the average home price to $686,700.
Residential property prices in the eight capital cities rose five per cent in the year to December, slower than the 8.3 per cent annual growth rate achieved three months earlier, according to the Australian Bureau of Statistics.
The total value of Australia’s 10 million dwellings rose by $92.9 billion to $6.9 trillion, after passing the $6 trillion mark in June, 2016.
“The results are in line with market indicators like falling auction clearance rates, and point to a continued moderation in annual property price growth across a number of Australia’s capital cities,” ABS chief economist Bruce Hockman said.
Sydney property prices fell 0.1 per cent In the December quarter, Melbourne prices rose 2.6 per cent, Brisbane gained 0.9 per cent, Adelaide added 0.6 per cent, Perth rose 1.1 per cent, Hobart lifted 3.9 per cent, Darwin fell 1.5 per cent, and Canberra rose 1.7 per cent.
In the year to December, property price growth was strongest in Hobart (13.1 per cent), followed by Melbourne (10.2 per cent) and Canberra (5.7 per cent).
Sydney prices rose 3.8 per cent in 2017, reflecting tighter regulatory conditions and the resulting slowdown in investor credit growth.
Adelaide had a yearly gain of 3.6 per cent, and Brisbane rose 2.1 per cent.
Darwin recorded the biggest yearly fall at 6.3 per cent, and Perth prices were down 1.7 per cent.