House prices in capital cities have continued to increase albeit the recent moderation of growth rate. The national median house price has risen by 10.1% compared to the same period in 2016 despite it being the lowest quarterly increase since March 2016.
The national median unit price has increased by 6.4% compared to the same period last year as well. It is the highest yearly result since September 2015.
While annual house prices in Perth are down by 3.8%, unit prices show a solid growth, increasing by 1.1% and remain steady compared to the same period in 2016.
Recent indications that signalled a revival in the Perth housing market appear to be premature though as house prices experience another sharp decline. The median house price dropped by 1.8% to a near five year low.
The Darwin housing market may be recovering with a strong 12.2% annual increase but unit prices continue to weaken.
Canberra house prices, on the other hand, have increased by 3.9% but unit prices continue to drop because of high levels of new apartment supply.
Meanwhile, Hobart house prices rose by 15.2% over the past year and its unit prices had an annual increase of 7.7%. The Adelaide housing market continues to rise for both houses and units.
Sydney house prices continue to increase but the rate of growth has sharply declined. The annual Sydney median house price rose by 12.7% while its annual unit median price increased by 10.5%.
Melbourne house prices have surged by 15.1% over the past year while its unit prices increased by 4.6%. Lastly, Brisbane remains subdued with house prices falling marginally by 0.1% and unit prices falling by 5.5% compared to last year.
What can you do during this period of slow growth?
Australia’s economy is sound despite being in a period of low growth, low inflation, low interest rates and low wages growth. This means investors can’t expect a strong capital growth in property prices but the environment is more stable.
It’s not a wrong time to invest but it is important to be more careful and critical in selecting a resilient and potentially profitable property.
Chan & Naylor does not sell so it remains unbiased. We would love to help you whether you are a beginner or seasoned property investor.
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For more information about property investment in Australia, contact a Specialist to discuss your particular circumstances.
Chan & Naylor Group has national offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and Bankstown, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.