Official Sept 2009 Quarter Housing Data
Composition Adjusted Housing Price Series
Source: Australian Property Monitors
Sydney
- House prices grew strongly in the September quarter with the median price rising +3.6%. This is the second consecutive quarter of strong median price growth above 3% for Sydney houses, bringing the median to historic highs, surpassing March 2004 results and now 2% above e pre-GFC levels.
- Unit prices rose by +3.6% in the September quarter, add ding to the continual rise since September 2008 now up +8.4% in 2009.
Melbourne
- The strongest housing market in the country recording a +6.1% rise in median house price for the September quarter, up +11.4% over the previous 12 months.
- Unit median prices mirrored their strong June quarter growth, rising +4.5% to $368,000, to be up over 10% in the first three quarters of 2009.
Brisbane
- House prices rose by +1.0% in the September quarter, but are still -2.5% below the historic highs of March 2008, and only up +1.7% for the 12 month period. This annual growth is the weakest for houses amongst the national capitals.
- Unit prices were flat in the June quarter, with the weakest price rise in the September quarter of all the capitals of +0.2%.
Adelaide
- This is the second consecutive quarter of median price growth for Adelaide houses, with quarterly growth of +3.3% slightly below the national average of +3.6%.
- Over the last 12 months, median house prices are up +2.66% and median unit prices are up +3.9%.
Perth
- Perth house prices have grown consistently for three quarters, with September quarter median house prices rising by +1.7%, but still below the national average.
- Unit prices rose for the third consecutive quarter, up strongly by +5.0% -the strongest growth for units outside of Darwin.
Hobart
- House prices rose very strongly for the second consecutive quarter to be up +5.4% in the three months to September and up +11.2% for the year.
- Hobart unit prices rose by +1.1% in the June quarter, but t are still down -7.0% over the last 12 months.
Canberra
- In the September quarter, Canberra house prices rose by y +4.8% and unit prices rose by +1.3%.
- For the 12 months to September, house prices have risen n by +6.3% and unit prices by +6.1%.
Darwin
- House prices were flat in the September quarter, but still up +10.5% over the 12 months to September.
- Units recorded the strongest growth of any market segment in the country, rising +11.9% in the September quarter to $410,000, with the 12 month price change now w exceeding 25%.
KEY POINTS
· House prices rise +3.7% and unit prices rose +3.4% nationally in Sept quarter
· Strongest quarterly growth in house since December 2003
· National house prices up 7.1% in 2009
· Melbourne house prices up 12.3% in 6 months
· House and unit prices rise in every capital city in September quarter
Source: Australian Property Monitors
Commenting on the APM House Price Report: Matthew Bell, Economist - Australian Property Monitors
The national housing market has continued to boom in the last three months, following a very strong June quarter, with quarterly house price growth at +3.7% -the e highest rate in six years.
The extraordinary recovery at the upper end of the market experienced in June in most major capitals, has now spread to the rest of the country. Nearly all capital city quarterly growth rates have been driven by strong sales of more expensive homes. In Sydney, the country’s largest housing market, median prices in 50% of the most expensive of suburbs grew by nearly triple the rate experienced in the least expensive suburbs.
Another quarter of improving employment results and share market increases of 20%, has meant that buyers are stepping into the oversold top end of the market to purchase properties at prices still below their highs in late 2007.
In addition, sellers who sold properties into the booming First Home Owner market over the past year have used sale proceeds to upgrade to more expensive homes and units, placing even more pressure on upper end markets.
With September being the last month where the full First Home Owner Boost was available, and interest rates on the rise, demand in the First Home Buyer sector is expected to soften due to falls in affordability. Price growth has already slowed in this sector and is expected to remain we ell below the rest of the market until 2010.
Mortgage brokers have reported increases in enquiries from property investors, and according to the ABS, housing finance for investment purposes rose nearly 8% in August. Consequently, investors are expected to return to the market in greater numbers over the next few quarters. Investor enthusiasm will be tested if mortgage rates rise as quickly as money markets are predicting, but strong rental yields and the prospect of future capital gains will entice many to enter the market in the second half of 2009 and early 2010.
Expected house price growth will be underpinned by record population growth and a significant short fall in new housing supply. With conditions in the jobs market improving, and renewed expectations the unemployment rate is unlikely to exceed 7%, rising interest rates are now the biggest risk to house prices.