ABS: Property prices fell 0.7% in Q2

The ABS has released its property price index – incorporating both detached houses and units – which registered another 0.7% decline in home values nationally over the June quarter and a 7.4% decline over the year:

Sydney (-0.5%), Melbourne (-0.8%), Brisbane (-0.7%), Perth (-1.4%), Adelaide (-0.6%), and Darwin (-1.8%) all recorded quarterly declines in values, whereas Canberra (+0.2%) and Hobart (+0.5%) recorded increases.

Over the year to June, Sydney (-9.6%) and Melbourne (-9.3%) recorded by far the biggest house price falls, whereas only Hobart (+2.0%) recorded any growth.

The ABS has also updated its estimated total value of residential properties in Australia, which was $6.61 trillion in the June quarter, down from $6.63 trillion in the March quarter and the $6.92 trillion at the same time in 2018. The average price of Australia’s 10,347,200 residential properties is also $638,900, down 6.2% from $681,100 recorded in the June quarter of 2018 (see below table).

Obviously this data is very dated and largely precedes the monetary, macroprudential and fiscal stimulus that has arrived/been announced since the federal election. It also does not capture the recent bounce in both auction clearance rates and prices captured by the more timely CoreLogic data.

Leith van Onselen

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