Home prices declined nationally in March quarter
Simon Johanson
April 28, 2011

Australia's sluggish housing market remained just that in the first three months of this year with prices falling 0.6 per cent nationally, according to the latest data.

Sydney prices fell marginally, by 0.4 per cent, Melbourne flatlined and Canberra was the only capital city where median house values actually rose in the quarter by a slim 0.2 per cent, according to Australian Property Monitors' March quarter house price index.

Other capital cities experienced larger price slumps: Hobart fell 2.3 per cent, Brisbane 2 per cent, Darwin 1.6 per cent, Perth 1.1 per cent and Adelaide 0.6 per cent.

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The data for Melbourne contradicts recent Real Estate Institute of Victoria figures which show a significant 6 per cent fall, by $36,000 to $565,000, in the city's median house price.

APM puts Melbourne's median house price in the March quarter at $563,397.

Sydney's median house price was $80,316 higher than Melbourne's at $643,713. It increased 2 per cent increase over the year.

The median price for units also fell in the March quarter by 1.2 per cent nationally to $406,279, but was up over the year by 0.4 per cent. House prices were up year-on-year basis by 0.2 per cent, APM said.

Similarly weak results for home values were recorded in the first two months of this year by rival property analyst RP Data-Rismark.

Capital city home values were absolutely flat in February following a seasonally adjusted 1.5 per cent drop in January, RP Data-Rismark researcher Tim Lawless said.

“Evidence to date shows that the Australian housing market is making a very controlled exit from the strong growth conditions of 2009/10," Mr Lawless said.

The fall in house prices follows near-record levels of housing stock coming on the market, the period homes are advertised for sale has also lengthened considerably.

Last month Reserve Bank of Australia chief Glenn Stevens said he was not "terribly troubled" about the level of house prices in Australia as house price to income ratios were "not exceptional by global standards."

APM senior economist Andrew Wilson said softening house prices were a "hangover" from strong price growth in 2009 and 2010, driven by record activity from first home buyers.

"Although price growth has been subdued in both houses and units through the first part of 2011, early signs are emerging of stabilisation and recovery in most capital cities," Dr Wilson said

Iniciado por guajiro

Por curiosidad: 540000 dolares australianos = 397.000 EUR es el precio de una casa en el area metropolitana de Perth.

Iniciado por Republik

Siempre he tenido curiosidad por saber de qué vive Perth, una ciudad grande mirando a la nada (hasta Madagascar), tan separada del resto. ¿Tanto da de sí la minería en el Oeste australiano?

La burbuja australiana tiene fama de haber alcanzado cotas absolutamente desaforadas, así que el pinchazo dolerá, no sé si han creado antimercado como nosotros o hay estrangulamiento de oferta (tipo SE de UK) , lo segundo suele ser menos maligno.

The Western Australian economy is a state economy dominated by its resources and services sector and largely driven by the export of iron-ore, gold, liquefied natural gas and agricultural commodities such as wheat. Covering an area of 2.5 million km2, the state is Australia's largest, accounting for almost one-third of the continent. Western Australia is the nation's fourth most populous state, with 2 million inhabitants (10% of the national population).[1]

In 2007, Western Australia's overseas exports represented 36% of the nation's total exports. In 2008-09, Western Australia’s gross state product was A$156.6 billion (13.6% of Australia's GDP), making it the nation's most productive state with a GSP per capita of $71,055 (compared with the national average of $55,195).

Overview
Western Australia's economy is largely driven by extraction and processing of a diverse range of mineral and petroleum commodities. The structure of the economy is closely linked to the abundance of natural resources found in the State, providing a comparative advantage in resource extraction and processing. As a consequence:
the Western Australian economy is more capital-intensive than all the other states.[4]
Gross state product per person ($71,055) is higher than any other state and well above the national average ($55,195).[3]
Diversification (i.e. a greater range of commodities) over the past 15 years has provided a more balanced production base and less reliance on just a few major export markets, insulating the economy from fluctuations in world prices (e.g. high oil and gas prices help sustain export income when prices of other commodities such as alumina and nickel fall)
There has been strong growth in the services (finance, insurance and property) and construction sector, which have increased their share of economic output.[4]
Recent growth in global demand for minerals and petroleum, especially in China (iron-ore) and Japan (for LNG), has ensured economic growth above the national average.
Western Australia's overseas exports accounted for 36% of the nation's total.[5] The state's major export commodities include iron-ore, alumina, crude oil and liquefied natural gas (LNG), nickel, gold, ammonia, wheat, wool, and live sheep and cattle. Western Australia has become known as the engine room of the Australian economy.
[edit]Resources


Western Australia's resource commodity mix, 2007.

Major commodity mix, 2008-2009.

In global terms, Western Australia is a significant producer of a wide range of resource commodities. Australia is the world's largest producer of both bauxite and alumina, with half of national production coming from Western Australia.[6] Alcoa's Huntly mine provides the feedstock for its three refineries at Wagerup, Pinjarra and Kwinana. Worsley Alumina transports bauxite from its Boddington mine to its refinery at Worsley via a 51 km conveyor belt. It is the world's third-largest iron-ore producer (15% of the world's total) and extracts 75% of Australia's 240 tonnes of gold. Diamonds are extracted at Argyle diamond mine in far north of the Kimberley region. Coal mined at Collie is the main fuel for baseload electricity generation in the state's south-west. Australia is the world's fifth largest exporter of LNG, most of which is produced by the North West Shelf Venture near Karratha.

Resource sector growth in recent years has resulted in significant labour and skills shortages, leading to recent efforts by the state government to encourage interstate and overseas migration. According to the 2006 census, the median individual income was A$500 per week in Western Australia (compared to A$466 in Australia as a whole). The median family income was A$1246 per week (compared to A$1171 for Australia). Recent growth has also contributed to significant rises in average property values in 2006, although values plateaued in 2007. Perth property prices are still the second highest in Australia behind Sydney, and high rental prices continue to be a problem.