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House prices 'fall in most capital cities'

Thursday, 31 July, 2008
Online real estate data group Australian Property Monitors says national house and unit prices could dip by 10 per cent next year. (AAP)

Australian house prices fell in a majority of capital cities in the June quarter as high interest rates brought about the weakest housing market in four years.

Online real estate data group Australian Property Monitors says national house and unit prices could dip by 10 per cent next year as a prolonged real estate slowdown sets in.

APM says Perth had the biggest median house price fall of 2.8 per cent in the June quarter followed by Sydney's 2.1 per cent decline.

"The June quarter housing data is the weakest we have observed since 2004," APM general manager Michael McNamara said.

"It is likely these results are the canary down the coal mine and that rapidly rising mortgage rates and a looming economic slowdown will usher in a sustained period of property market weakness."

Median house prices fell in five of Australia's eight capital cities in the three months to June 30.

Hobart suffered the biggest median price dive for home units, 3.8 per cent,and had the nation's cheapest capital city real estate with the median unit price at $207,568.

Melbourne house prices grew by a nation-leading 14 per cent to $449,888 over the year to June although Sydney still had the most expensive median house price, at $542,488.

Over the same 12 months, Darwin home unit prices climbed by a nation-beating 17.9 per cent to $324,454.

Adelaide was the only other capital city to enjoy double-digit price growth for home units, rising an annual pace of 16.9 per cent.

Sydney kept the title as having the most expensive median price for units, at $366,622, marginally ahead of Perth and Canberra.



Source: SBS/AAP