Sydney was the only city in Australia to show capital growth in February as the overall capital city median price showed no improvement, according to the latest figures from RP Data and Rismark.
The firms' latest Home Value Index has revealed that the market is 'treading water', with overall growth subdued. The average city dwelling value showed zero growth in February, although regional properties showed a minimal increase of 0.5% (seasonally-adjusted).
However, Sydney was the only city to show overall growth in February of 0.3%. The average dwelling price fell in every other capital, with Darwin showing the biggest fall of 9%.
Even so, While median house prices led negative growth - with only Sydney and Canberra showing growth of 0.1% and 3.9% respectively - units proved to be more robust, increasing in value in Sydney, Melbourne, Brisbane and Adelaide.
RP Data's senior research analyst, Cameron Kusher, believes that the outlook for Australian property remains 'very subdued'.
"Auction clearance rates have been a little weak, the number of homes advertised for sale is at the highest level it has been since we started collecting this data, and other lead indicators, such as the time it takes to sell a home, and the margin by which vendors have to discount their properties, are climbing again after reaching a plateau in recent months," he said.
These conditions are in the favour of prospective investors, he added.
"The large stock of homes available for sale should afford potential buyers increasing scope to negotiate on price and get the best possible deal."
Are units the best bet for capital growth in this market? Are you seeing widespread negative growth in your neighbourhood?
