Capital city growth rates a "mixed bag"
The June quarter delivered patchy results for the property market, with asking prices falling in some capital cities.
According to SQM Research, Sydney was the quarter’s stand-out market.
Asking prices for houses in the city climbed by 1.1 per cent while units rose by 1.8 per cent in the three months to June.
Brisbane also ended the financial year on a strong note as both houses and units prices increased by 0.9 per cent in the quarter.
Melbourne was the only other city to see increases in both sectors, with houses rising by 0.6 per cent and units by 0.4 per cent.
On the other hand, both Canberra and Darwin recorded falls across both property types.
In Canberra, house prices dropped by 3.8 per cent and units by 2.1 per cent, giving Canberra the nation’s worst results.
Darwin house prices dropped by 3.3 per cent while unit prices fell by one per cent.
Both Perth and Hobart recorded increases in the housing sector and falls in unit asking prices.
Adelaide, on the other hand, saw units rise by 1.3 per cent even as house prices fell by 0.1 per cent.
Director of SQM Research Louis Christopher said the results were a “mixed bag”.
“The RBA will be somewhat pleased with these results, in that we now have a housing market that is not too cold nor not too hot,” he said.
In his view, the data suggests the RBA is likely to keep rates on hold for an extended period.
“Back in April there was still much speculation of an expected interest rate rise as early as May with consensus there would be one sometime in the late third quarter,” he said.
“All that speculation has now vanished. Indeed, money market expectations are now that the rate rise won’t come this year or even next,” he said.