Sydney housing price growth slows down in June to 3.6% from 9.1% in March

House prices in Australia registered strong growth for the second quarter of 2016 after a weak start during the first quarter. However, it was the slowest pace of growth in over three years, says the Australian Bureau of Statistics.

Prices of homes in eight Australian cities went up 4.1 percent in Q2, however, the slowdown was more apparent in the Sydney market which logged a 3.6 percent hike for the same quarter, down from 9.7 percent in Q1. Compared to September 2015, it is only one-fifth of the 19.9 percent growth in Q3 2015, notes Australian Financial Review.

But despite the slower growth, total value of 9.7 million residential properties in the eight capital cities reached $6 trillion, up from $138.3 billion, bringing the average price to $623,000, reports The Australian. While on a quarterly basis, Sydney’s growth was slightly higher at 2.8 percent compared to Melbourne’s 2.7 percent, on a 12-month basis to June, Melbourne is way ahead with an 8.2 percent expansion versus Sydney’s 3.6 percent.

Louis Christopher, managing director of SQM Research, forecasts higher annual growth rate for Sydney by the end of 2016. He says the strong prices would likely be on the back of restrained stock levels, especially around the inner suburbs.

Seasonal rise in mid-September listings I normal, however, there is not a lot coming on the market through for spring, he adds. Christopher explains, “Many buyers who sold in July and August are unable to re-enter the market … increasingly more crazy money is being spent,” quotes Domain.

For the same quarter, most of the capital cities logged growth, except Perth which registered a 4.8 percent decline and Darwin with a 6.5 percent dip. Brisbane grew 4.3 percent, Adelaide 3.5 percent, Hobart 4.9 percent and Canberra 6 percent.

VIDEO: Sydney Australia House Prices

Source: Mortgagee Property