New data from the Australian Bureau of Statistics shows Australian house prices fell 0.8% in the final three months of 2008, taking the total fall for the year to 3.3%.
The fall in the December quarter follows a 1.8% fall in September 2008, the biggest quarterly fall in 30 years.
Melbourne was the hardest hit city in the December quarter, with prices dropping a massive 1.7%. Brisbane was not far behind, with prices sliding 1.2%.
The 3.3% fall in house prices over 2008 is in sharp contrast to recent performance of the housing market. In 2007, prices rose 12.3%, while prices increase by 8.3% in 2006 and 2.3% in 2005.
Perth stands out as worst-performing market in 2008, with prices falling 6.7% as the heat came out of the mining boom. Sydney also had a poor year, with prices falling 4.2%. Prices in Melbourne fell 3.2%.
Only Darwin (a 3.8% rise in prices over 2008) and Adelaide (up 2% in 2008) posted gains.
Most commentators are bracing for a fall in house prices of between 5% to 10% in 2009, although this could worsen sharply if Australia’s unemployment rate rises and home owners are forced to properties on the market. <
|
City |
Sept 2008 to < |
Dec 2007 to < |
|
Sydney |
-0.3 |
-4.1 |
|
Melbourne |
-1.7 |
-3.2 |
|
Brisbane |
-1.2 |
-1.4 |
|
Adelaide |
0.3 |
2.0 |
|
Perth |
-0.9 |
-6.7 |
|
Hobart |
-1.0 |
-3.1 |
|
Darwin |
1.6 |
3.8 |
|
Canberra |
0.7 |
-4.1 |
|
Weighted average of eight capital cities |
-0.8 |
-3.3 |
<
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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