Australian House Prices Starting to Cool

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Tuesday, September 1st, 2015
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Winter has slightly cooled the Australian property market, with the pace of growth in house prices across the mainland state capitals slowing and new home sales falling.

Preliminary data from analytics firm CoreLogic RP Data showed prices in the mainland capitals rose 0.5 per cent in August, after rises of 2.8 per cent in July and 2.1 per cent in June.

After prices rose 1.1 per cent in August last year, the latest monthly rise suggests annual growth slowed to about 10.5 per cent in the year to August, from 11.1 per cent over the year to July.

CoreLogic RP Data head of research Tim Lawless said the monthly growth slowdown was most evident in Melbourne, where prices were relatively flat, up only about 0.1 per cent on average in the first four weeks of August compared with the July average.

Sydney prices were up about one per cent.

Meanwhile, Housing Industry Association data showed new home sales eased 0.4 per cent in July, after rising 0.5 per cent in June.

But HIA chief economist Dr Harley Dale said home sales remain in strong shape, drifting along at historically high levels in mid 2015.

“It appears that the cyclical peak for total new home sales occurred in April, but the subsequent downward trend is very mild,” has said.

Mr Dale acknowledged there was little prospect for further growth in new home construction in 2015/16 but, after three years of strong growth that have helped prop up the domestic economy, he said Australia is still in for another healthy year.

Detached house sales rose 0.7 per cent in July, while multi-unit sales fell 4.2 per cent.

 

By Garry Shilson-Josling and Lucy Hughes Jones
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