The Real Estate Institute of Australia (REIA) have released results today, identifying that following 13 quarters of consecutive growth, the weighted average median house price for Australia’s 8 capital cities dropped in the 2015 December quarter.
REIA President Neville Sanders stated, “The weighted average, capital city median price decreased by 0.4% to $695,788 for houses and 0.7% to $543,468 for other dwellings.”
Although Brisbane, Hobart and Canberra saw strong growth, in conjunction to Perth and Darwin achieving marginal increases, this was not enough to offset falling median house prices in Sydney and Melbourne. Adelaide remained unchanged over the quarter.
“Annual growth is still strong but lower compared to what we observed over the last couple of years. Compared to the December quarter of 2014, the weighted average median house price increased by 7.4% while the figure for other dwellings went up by 5.7%.” states Sanders.
Sydney has been the strongest market over the past few years, which showed the largest median price decrease. This has left real estate commentators questioning whether the city’s property market has reached its peak.
“Regulatory frameworks are responsible for the decrease in the value of investment housing commitments. Uncertainty around the future on negative gearing arrangements is expected to further contribute to the decline in investor activity. With this, owner occupiers continue to have a strong presence in the stabilising market,” concluded Mr Sanders.