National property prices have dropped annually for the first time in six years, driven by weakening markets in Sydney and Melbourne.
The median Sydney house price fell 4.5 per cent during the year to June 2018, the largest annual decline in a decade.
In Melbourne and Sydney, which make up two-thirds of the value in the national market, growth was the slowest since September 2012.
The median Sydney house price fell 4.5 per cent during the year to June 2018, the largest annual decline in a decade (stock image)
The national median house price is now $802,077, one per cent lower than a year earlier, a report by the Domain Group revealed.
‘On a national level we’re seeing a softening of conditions which is being driven by Sydney and Melbourne,’ Domain analyst Nicola Powell told Fairfax Media.
‘All capital cities are showing softer conditions compared with last year, with the exception of Hobart and Perth.’
Ms Powell said Sydney house and unit prices were now back at 2016 levels, with more restrictions on credit and a glut of units responsible for the fall.
National property prices have dropped annually for the first time in six years, driven by weakening markets in Sydney and Melbourne (pictured are annual house price changes)
In Melbourne, which together with Sydney makes up two-thirds of the value in the national market, growth was the slowest since September 2012 (stock image)
Capital is now flowing from Sydney and Melbourne into more affordable markets, she told AAP.
Sydney’s median house price fell to $1,144,217, down 1.4 per cent from $1,159,945 in March, a significant decline from $1,198,456 in June 2017.
The city’s median unit price also dropped – falling 0.5 per cent during the June quarter to $737,080, a 3.5 per cent drop from $764,157 a year ago.
House prices in Melbourne rose by half a per cent year-on-year, the slowest growth rate since a two per cent fall in the latter half of 2012.
Darwin recorded the country’s biggest fall – a dip of 11.8 per cent since June last year. The median house price in the Northern Territory capital is now $539,497.
The national median house price is now $802,077, one per cent lower than a year earlier, a report by the Domain Group revealed (stock image)
Dr Powell said the Darwin market could rebound if the city sees both population growth and an improved economic outlook.
Tasmania’s capital saw the largest rise in house prices, which were up almost 16 per cent over the year
Hobart’s median house price is now $461,547, and unit prices increased 22.6 per cent to $370,085.
In Brisbane house prices rose two per cent over the year, but fell 0.1 per cent since March to sit at $566,322.
The city’s median unit price fell 6.4 per cent year-on-year and 1.2 per cent over the quarter.
Perth house prices fell slightly, but units saw the best annual growth rates in three years, rising 1.7 per cent.
Dr Powell said it was a sign the city was recovery from its property woes, despite continued declines in house prices.
Ms Powell said Sydney house and unit prices were now back at 2016 levels, with more restrictions on credit and a glut of units responsible for the fall (stock image)