Sydney presses on as house price growth takes a breather
Glenda Kwek Business Reporter
RP Data/ Rismark Australian house price data for February 2014
Sydney home prices have continued to rise in February, despite a flat month for overall dwelling values following eight straight months of increases.
The combined residential property values in Australia's eight capital cities recorded no growth in February, after soaring by 10 per cent over the past eight months, new figures released by RP Data and Rismark today showed.
Sydney prices lifted by 0.8 per cent last month, by 1.4 per cent in Hobart and by 0.7 per cent in Darwin. Prices slipped by 0.2 per cent in Melbourne, Adelaide and Perth, and fell 0.8 per cent and 2 per cent in Canberra and Brisbane respectively.
Home prices across Australia are now 13.2 per cent higher than they were in June 2012, the data revealed.
"The February market results are in stark contrast to earlier readings where capital city dwelling values moved 2.6 per cent higher over the past three months," RP Data-Rismark national research director Tim Lawless said.
"The likelihood is that the weak reading for February is an adjustment from the strong readings in December and January rather than the beginning of a flat to negative growth phase across the
macro level housing market."
Mr Lawless said the rapid pace of growth in the housing market was expected to slow later this year amid low rental yields as as potential buyers struggle with affordability constraints.
"Additionally, with a belief that mortgage rates are likely to start tightening later this year, it may help to quell some of the exuberance we have been seeing," he said.