25 June 2018
Bob Cunneen, Senior Economist and Portfolio Specialist
Australian home prices
Sources: Australian Bureau of Statistics (ABS) 6416.0 – Residential Property Price Indexes: Eight Capital Cities, March 2018.
Australia’s housing boom over the past four years has seen contrasting fortunes.
The Reserve Bank of Australia’s (RBA) Board meeting minutes for June 2018 noted that “housing prices were still 40 per cent higher in Sydney and Melbourne than at the beginning of 2014, while housing prices in Perth had fallen by around 10 per cent over the same period.”
Yet there are signs that Sydney’s status as the “Emerald City” is losing some sparkle.
According to the Australian Bureau of Statistics property data, house prices have slipped by 1% over the past year to March 2018. The RBA has noted that “housing markets in Sydney and Melbourne have slowed” as the “Australian Prudential Regulation Authority’s supervisory measures and tighter credit standards have been helpful in containing the build-up of risk in household balance sheets”.
For Perth, home prices have also fallen by 1% over the past year. However with the Mining sector now showing renewed confidence and new iron ore investment projects, Perth may be set to shine as the new Emerald City across the Nullarbor.
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