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House prices fall across Australia
Submitted 6/05/2009
APP
The house price index fell by 2.2 per cent in the March quarter, according to figures from the Australian Bureau of Statistics (ABS) published today. This compared with a downwardly revised 1.2 per cent fall in the December quarter.
However, while falls of up to 3.6 per cent were recorded in some cities, in Adelaide house prices were down just 0.8 per cent.
Economists had forecast house prices to remain flat in the March quarter and to have declined by 3.9 per cent in the 12 months to March.
In the year to March, the house price index fell 6.7 per cent.
Recent private sector surveys had suggested a build-up in activity at the lower end of the housing market following a boost to government grants to first home buyers.
But Nomura Australia chief economist Stephen Roberts said even if this was the case, it appeared to have little impact on average house prices.
"I just wonder whether the low end of the market is quite as active as we have been led to believe," he said.
"There may be some activity, but it may not be putting any upward pressure on prices.
"In fact, the risk is prices are still declining even in that part of the market."
In October last year, the Federal Government doubled the first home buyers grant to $14,000 for those buying an existing home and tripled it to $21,000 for those constructing their own home or buying a new home.
The temporary boost is due to expire on June 30.
The ABS survey measured house prices in Australia's eight capital cities.
It found house prices fell by the most in Perth (down 3.6 per cent), Sydney (down 2.9 per cent) and Melbourne (down 2.3 per cent) in the March quarter.
House prices in Brisbane and Adelaide fell 1.1 per cent and 0.8 per cent, respectively.
Darwin had a stronger result, with house prices up 2.2 per cent.
Hobart and Canberra recorded rises of less than one per cent.
