Double digit property price growth a distant memory
Australia’s capital cities have recorded positive growth for the second consecutive month, latest figures show.
According to RP Data-Rismark’s May index, capital city values were up 0.6 per cent in May.
Meanwhile, non-capital city values fell by 0.9 per cent over the same month.
RP Data’s director of research Tim Lawless said RP Data-Rismark’s May index results reinforce speculation that the national real estate market is moving towards a more sustainable growth path.
“This second consecutive month of single-digit annualised gains sends a signal that the double-digit growth rates recorded since January 2009 are behind us,” Mr Lawless said.
"The signposts have been in the market for several months now with lower auction clearance rates, fewer housing finance commitments, and weakening consumer confidence,” he said.
Rismark International managing director Christopher Joye said the price growth comes down to supply and demand.
“The demand for homes is stronger in the major cities whereas the supply of new dwellings has been weak.
“In comparison, the smaller metro and regional markets have relatively less demand combined with much more elastic housing supply,” Mr Joye said.