The ABS Residential Property Price Index (RPPI) has reported national price growth of 5 per cent in 2017, subdued by a sharp fall in Sydney’s dwelling values.
National dwelling values increased by 5 per cent through the year to the December quarter, continuing a downward trend from the September quarter (8.3 per cent) and July quarter (10.2 per cent).
“The results are in line with market indicators, like falling auction clearance rates, and point to a continued moderation in annual property price growth across a number of Australia’s capital cities,” ABS chief economist Bruce Hockman said.
Sydney’s property prices grew by 3.8 per cent thought the year to the December quarter 2017, down by 5.7 per cent from 9.4 per cent in the September quarter.
Mr Hockman believes that Sydney’s price drop is attributable to the regulatory crackdown on investor lending.
“The property price result of 3.8 per cent in Sydney can be partly explained by tighter regulatory conditions and the resulting slowdown in investor credit growth,” the chief economist added.
According to the ABS, over the December quarter, RPPI growth in Melbourne (2.6 per cent) and Hobart (3.9 per cent) were “partially offset” by reductions in Sydney (0.1 per cent) and Darwin (1.5 per cent).
The ABS research also reported that the total value of residential properties in Australia rose by $92.9 billion to $6.9 trillion. The average dwelling value now sits at $686,700.
[Related: Sydney’s home value slide continues]