Money Property prices drop for ninth straight month, as regional markets outpace the capitals

08:00  02 july  2018
08:00  02 july  2018 Source:

Is Brisbane the first big crack in Australia’s house price bubble?

  Is Brisbane the first big crack in Australia’s house price bubble? Is the Brisbane apartment market the canary in the coal mine with a Chinese buyer reported to have sold an apartment at a big 28% loss?Share market investors should be following this news closely as a hard drop in house prices will certainly have an impact on Aussie equities and the wider economy.

The north-west of England has now replaced the capital as the fastest-growing property market in the UK. With the most recent official data showing earnings growth averaging 2.5%, that means that unusually, wages are currently outpacing house prices .

CoreLogic said regional markets in the state showed the highest levels of demand and value growth of all regional markets Email newsletters. The hottest deals and news sent straight to your inbox. Capital city house price boom rubs off on regions . Regional areas are seeing strong property …

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Housing prices have slipped for many Australian capital cities in the past quarter, as tighter lending conditions and falling investment levels continue to affect the market.

Home prices fell 0.2 per cent in June on a national basis, which marks the ninth consecutive month-on-month drop, according to the latest report from property industry analysts CoreLogic.

National property prices peaked in September last year and have since fallen 1.3 per cent to a median of $556,384.

The weakest capital cities were Sydney (-0.9pc) and Melbourne (-1.4pc) in the last three months, bringing their median (middle) prices down to $870,554 and $716,774 respectively.

NSW Treasury warned higher foreign investment taxes would have 'negative' impact

  NSW Treasury warned higher foreign investment taxes would have 'negative' impact The NSW Treasury was warned that hefty new taxes on foreign investors could have a "large negative impact" on investment in Sydney's real estate. Since July 2017 foreign buyers - mostly from China - have paid a stamp duty of eight per cent and from this year will also pay an annual two per cent land tax on their properties.

That was the 70th straight month of year-on-year price gains. “A shortage of affordable homes for sale will frustrate the ambitions of many first-time buyers, who will be forced to stay in the rental market for longer than planned,” said Matthew Pointon, property economist at Capital Economics in New York.

But the latest quarterly drop is the biggest this decade by far, and amounted to a savings of about a month for the average renter across the region . The slowdown comes as the number of new apartments opening across the area has hit record levels and has begun to significantly outpace the

Hobart remains the capital with largest price increases, jumping 2.3 per cent — yet it still has the nation's second-lowest median capital city dwelling price, at $436,899.

However, the fall in capital city prices was partially offset by a 0.6 per cent rise in combined regional markets.

The best performing regional markets over the past year were Geelong (+11pc), Launceston (+7.1pc) and Southeast Tasmania (+6.8pc).

More to come.

Home prices in Sydney and Melbourne are still falling .
<p>Prices in Sydney, Melbourne <g class="gr_ gr_3 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep" data-gr-id="3" id="3">and</g> Perth all eased by 0.1%, while those in Brisbane and Adelaide were flat.</p>Australian home prices continued to fall in early July, dragged down yet again by declines in Sydney and Melbourne.

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