Australia's residental property market takes a breather in December

Date released: 29/01/2010

After recording a stellar performance over most of 2009 the Australian residential property market ended 2009 on a softer note with national home values virtually flat during the month of December.

Australian home values recorded a -0.3 per cent fall in the month of December as the seasonal effect of the summer slowdown combined with rising interest rates and fading first time buyers put a dampener on what has otherwise been a very strong year for Australian residential real estate.

While capital growth across all homes in the December quarter was the weakest of the year, values were still up an impressive 2.1 per cent.

All capital cities recorded strong capital gains during 2009 with the most spectacular results seen in the Darwin and Melbourne markets where home values were up 16.6 per cent and 15.6 per cent respectively.

Key Statistics
•    National dwelling values down -0.3% in month of December
•    National dwelling values up  11.5% over 2009 calendar year

Capital growth and median dwelling prices, Australian capital cities, 2009 calendar year
•    Sydney values ↑ 11.4% ($510,000)
•    Melbourne values ↑ 15.6% ($460,000)
•    Brisbane values ↑ 7.3% ($443,000)
•    Adelaide values ↑ 6.2% ($365,000)
•    Perth values ↑ 7.1% ($470,000)
•    Darwin values ↑ 16.6% ($455,000)
•    Canberra values ↑ 14.7% ($507,500)
•    Hobart values ↑ 12.4% ($333,250) (Hobart data is based on final November figures)

Best performing capital city
•    Darwin, with home values up 16.6% over 2009 calendar year

Weakest performing capital city
•    Adelaide, with home values up 6.2% over the 2009 calendar year

Highest rental yields
•    Darwin with gross rental yield of 5.7% for houses and 5.9% for units

Lowest rental yields
•    Melbourne with gross rental yields of 3.7% for houses and Perth with a gross rental yield of 4.4% units

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