The latest update for the ABS index of established house prices shows a modest easing at the end of last year.
The ABS Index of Established House Prices eased by 1.0 per cent in the December 2011 quarter to be 4.8 per cent lower compared to the December 2010 quarter.
The capital city project (new) house price index rose by a bare 0.2 per cent in the December 2011 quarter to be up by 1.5 per cent on a year earlier.
Across capital cities, in the December 2011 quarter the project (new) house price index increased by 0.7 per cent in Sydney, 0.1 per cent in Adelaide, 0.4 per cent in Perth, and 0.1 per cent in Darwin. Prices were flat in Brisbane, Hobart, and Canberra, and fell by 0.3 percent in Melbourne.
Across capital cities, in the December 2011 quarter the established house price index increased by 0.5 per cent in Perth, 0.8 per cent in Hobart, and by 0.7 per cent in Canberra. The index fell by 1.0 per cent in Sydney, 1.6 per cent in Melbourne, 1.3 per cent in Brisbane, 1.6 per cent in Adelaide, and 1.4 per cent in Darwin. These results will be subject to revision by the ABS, as will the September quarter results.
Housing Industry Association’s Chief Economist, Dr Harley Dale, said that “the lower interest rates will feed into an improved environment in 2012, although we won't see a return to widespread strong house price growth.”
