Adelaide house prices rose 2.9 per cent in the just-completed financial year, well behind national gains of more than 10 per cent.
Australia’s capital city dwelling values ended the 2013-2014 financial year 10.1 per cent higher, RP Data’s latest figures show.
Capital city dwelling values gained 1.4 per cent over the month of June 2014, with all cities apart from Adelaide and Darwin recording a rise.
“Over the 2013-2014 financial year the top performing cities for capital gains have been Sydney and Melbourne where dwelling values are up 15.4 per cent and 9.4 per cent respectively across each city,” RP Data’s report states.
“The Brisbane housing market, where conditions have generally remained relatively sedate, is now gathering some pace with dwelling values moving 7.0 per cent higher over the past twelve months, the third strongest result of any capital city.
“On the other hand, the index results show that the softest performances over the past year have been recorded in Hobart (2.5 per cent), Canberra (2.9 per cent) and Adelaide (2.9 per cent).”
RP Data’s researchers have examined the latest “growth cycle” where prices recovered from the long post-GFC slump.
The capital city average was around 15 per cent with Sydney recording the most significant capital gain at 23.1 per cent growth since the end of May 2012.
Adelaide’s housing market recorded the least significant capital gain over the cycle to date, with dwelling values rising by 5.6 per cent in the two year period.
According to RP Data’s Tim Lawless, markets that had been “hot” are now pulling back.
“Looking through the monthly movements, the trend in performance is much more important,” Lawless said.
“It shows that the quarterly rate of growth peaked across the Australian housing market in August last year at 4.0 per cent. Since that time the rate of capital gain has generally trended towards a more sustainable level.
“The slowdown in dwelling value appreciation will be a welcome relief to policy makers and those seeking to buy into the housing market,” he said.
Median dwelling prices June 2014
Sydney: $690,000
Melbourne: $560,000
Darwin: $535,000
Canberra: $525,000
Perth: $515,000
Brisbane: $455,000
Adelaide: $400,000
Hobart: $328,000
