Australia: Housing Market Softens

June 2008 Quarter Housing Data from homepriceguide.com.au is the weakest since 2004. There were widespread falls across Australia’s major capitals:

Sydney
Sydney has experienced the largest price drop in houses since June 2004 dropping by 2.1% in the quarter to June 2008. Sydney apartment values have eased for the second consecutive quarter.

Canberra
A glut of unsold properties in the Canberra market provides choice and bargaining power for buyers.
This is putting downward pressure on prices.

Melbourne
Melbourne’s auction market is now the poorest since 2004. Buyer confidence is waning and house
prices have begun to slide. House prices have eased by 1% in the June 2008 quarter while apartment prices held steady.

Brisbane
The weakness for houses and units in the Brisbane market is now pronounced. Brisbane house values eased by 1.3% in the June 2008 quarter and unit values dropped by 3%.

Adelaide
The Adelaide market has become extremely sluggish. House and unit values have been in a holding
pattern over the June quarter.

Perth
Deflation in Perth house prices now accelerating. House values declined 2.8% over the quarter. Australian Property Monitors holds its outlook for Perth, expecting a fall of 10-15% over the next 12 months.

Median House Prices
June Quarter 2008

City/Town	House Price $ (£)	12 Month % change
Sydney	542,488 (250,629)	1.1
Perth	496,111 (229,203)	-1.6
Melbourne	449,888 (207,848)	14.0
Canberra	497,754 (229,962)	8.1
Darwin	466,675 (215,603)	9.6
Brisbane	437,379 (202,069)	11.5
Adelaide	415,701 (192,054)	16.0
Hobart	286,716 (132,462)	10.3

exchange rate 1.00 AUS = £0.462