Apartment slump continues for third month: Capital city median price update

Melissa Jenkins
(Australian Associated Press)

 

The number of new apartments being built across Australia has fallen for the third consecutive month, the latest Ai Group Performance of Construction Index shows.

But the decline has slowed with the survey’s apartment sub-index lifting to 46.8 points in October – however, that is still well below the solid growth recorded in May when it was at 68.5 points.

Ai Group head of policy Peter Burn said apartment construction could continue to slow over coming months after historically high levels of earlier this year and strong activity levels at the same time last year.

“There may still be plenty of cranes visible on new apartment sites but there are now many less than was the case a year ago,” he said.

House building continued to expand in October but had the growth rate had moderated from September.

Housing Industry Association principal economist Tim Reardon said house building would continue to soften into 2018.

Meanwhile, growth in home prices has also stalled, the latest survey by property analytics firm, CoreLogic.

Sydney’s minor decline – 0.1 per cent over the week and 0.5 per cent over the month – was offset by small rises in Perth and Melbourne, with Adelaide and Brisbane prices were flat.

Melbourne’s prices were up 0.1 per cent last week and by 0.4 per cent over the month to Sunday, while Perth lifted 0.1 per in the week and 0.2 per cent over the month.

Both Brisbane and Adelaide home values were stagnant in the week to November 5 and increased only 0.1 per cent over the past month.

However, last week’s auction clearance rate was better than the previous week, although volumes were well down.

Last week’s preliminary national clearance rate lifted to 66.8 per cent from the previous week’s 64.5 per cent final rate, but was down on the 73.6 per cent for the same time last year.

However, fewer homes went under the hammer, with just 2,019 up for auction compared with the previous week’s year-to-date high of 3,713.
CAPITAL CITY PRIVATE TREATY MEDIAN PRICES

HOUSES

Sydney – $960,000

Melbourne – $761,000

Canberra – $630,000

Darwin – $575,000

Brisbane – $520,000

Perth – $495,000

Adelaide – $439,500

Hobart – $405,000

Combined capitals – $711,486

 

UNITS

Sydney – $720,000

Melbourne – $542,250

Canberra – $425,000

Brisbane – $405,000

Perth – $385,000

Darwin – $382,500

Adelaide – $326,500

Hobart – $320,000

Combined capitals – $577,066

Source: CoreLogic Property Market Indicator Summary week ending November 5, 2017.

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