According to the ABS’ Residential Property Price Indexes for the September Quarter, the weighted average price index for residential properties rose by 2% during the three-month period, down from the 4.7% it increased by during the June quarter.
In the year to September, the index rose 10.7%, with Australia’s residential real estate now estimated to be worth nearly $5.9 billion.
According to the ABS, price indexes in Sydney (3.1%), Melbourne (2.9%), Brisbane (1.3%), Adelaide (1.2%), Canberra (1.3%) and Hobart (0.5) rose over the quarter.
Over the period price indexes fell in Darwin by 0.4% and Perth by 2.4%.
Annual figures show an identical story for, with prices in the 12 months to September increasing in Sydney (19.9%), Melbourne (9.9%), Canberra (4.0%), Brisbane (3.8%), Adelaide (3.5%) and Hobart (1.7%).
Prices fell in Darwin and Perth by 1.2% and 1.8% respectively.
"Whilst the quarterly growth in Sydney has slowed from the June quarter, through the year house prices in Sydney have risen 21.9% and attached dwelling prices have risen 15.8%, both the largest annual rises of all cities," ABS spokeswoman Robin Ashburn said.
While Ashburn said Sydney has been by far and away the biggest rises over the past year, it might be time to for people to get used to more conservative growth trends.
According to the State of the Market report released yesterday by Domain, Sydney is set to lose its title as the nation’s capital growth leader, with Melbourne to take over.
However the investors in the Victorian capital shouldn’t expect to enjoy the same conditions in 2016 that Sydney enjoyed in 2015, with prices predicted to grow by only 5%.
Prices in Sydney, Adelaide and Hobart are predicted to rise by 4%, while Brisbane and Darwin will see price increases of 3%.
Prices are predicted to rise by 2% in Perth.
“The days of two figure growth are well behind Sydney, there’s no rational case for more double figure growth,” Domain Group senior economist Andrew Wilson said told Fairfax media outlets.
“Sydney will remain one of the strongest cities through the cycles, but [the growth of 2015] is over,” Dr Wilson told Fairfax.
While the price growth slowdown may mean investors will need to look elsewhere if they want to make a quick profit, Sydney’s movements in 2016 are likely to be welcomed by some.
“First home buyers can breathe a sigh of relief as home prices stop outpacing them by thousands of dollars a month,” Dr Wilson told Fairfax.
“The strongest markets are likely to be the higher priced inner-city suburbs, which performed best in the second-half of 2015.”
