• Property market update March 2018

    Property market update March 2018

    After a sluggish few months for property prices, home owners will be keeping a close eye on the way the market behaves this quarter. December and January are typically quiet months for the property market, as most people wind down for the holiday break. That can make it difficult to gauge which way the market is likely to head for the remainder of the year.

    Looking at the numbers, property prices fell an average of 1.0% across our capital cities in the three months to 31 January. The cooling Sydney market posted the largest drop (-2.5%), with Hobart (+3.1%) and Canberra (+1.0%) the only cities to make significant gains.

    There are further signs of a softening market when you look at auction results around the country.

    In the December quarter, the combined capital city auction clearance rate was 62.3%, down from 67.8% the previous quarter. While Sydney again played a key role in this shift (clearance rates fell from 66.8% to 57.7%), the only cities that didn’t experience a decline were Brisbane and Adelaide.2

     Interestingly, the decline in property prices and clearance rates has occurred despite no change in interest rates by the RBA. If the RBA does finally start to increase rates later this year, this could further dampen market sentiment. 

    If you’re looking to buy a new home or investment property, a softer market could provide more favourable buying conditions. This autumn should provide a better indication on where buyers and sellers stand, and we’ll be sure to keep you posted next quarter.

    Median dwelling (house/unit) prices at 28 February 20181 

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $880,743 -0.5%
    Melbourne  $723,334 6.9%
    Brisbane $491,850 1.8%
    Adelaide $433,354 2.2%
    Perth $464,474 -2.7%
    Darwin $426,421 -7.4%
    Hobart $416,840 13.1%
    Canberra $588,616 3.2%
    Combined capitals $655,768 2.0%


    CoreLogic Home Value Index, 1 March 2018

    2 ‘Quarterly Auction Market Review, December 2017’ – CoreLogic, 29 January 2019

     

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