Perth property boom ends, Sydney sags

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Perth property boom ends, Sydney sags

February 15, 2007

THE Perth house price boom has officially ended and Sydney has fallen deeper into the red as the property downturn continues to bite, according to data released today by the Australian Bureau of Statistics.
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In the December quarter house price growth in Perth slowed to just 1.7 per cent - with house prices in the city now growing at the forth slowest capital city after more than two years in pole-position.

In Sydney median house prices fell 1 per cent in the quarter, reversing slight improvements during 2006 and delivering an annual growth rate of  - 0.1 per cent.

Elsewhere in the country house price growth remained relatively subdued, except for Brisbane and Darwin which delivered respectable price growth of 3 per cent for the quarter.

National house price growth for the December quarter was 0.9 per cent for established houses and 0.6 per cent for new houses, according to the ABS. Economists expected a rise of 1.5 per cent in the December quarter.

Housing Industry Association chief economist Harley Dale said despite the stagnant market, housing affordability remained at “critical lows”.

“Last year's rate rises shouldn't be followed by more this year and house price growth will probably be slower this year than last,” Mr Dale said.

“However, as we saw only a few years ago - in 2004 - that situation doesn't solve the housing affordability crises.”

The ABS house price index, which takes the weighted average of eight cities across Australia, was 8.3 per cent higher than a year earlier.

However, there remained a huge divide between the south eastern states, which are still suffering the hangover effects of the housing boom at the start of the decade, and the prosperous west that continues to benefit from exceptional global demand for resources.

Bron : http://www.theaustralian.news.com.au/story/0,20867,21230301-601,00.html
 
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