AU: Residential Property Prices

Mon Mar 21 19:30:00 CDT 2016

Actual Previous
Q/Q percent change 0.2% 2.0%
Yr/Yr. percent change 8.7% 10.7%

Fourth quarter 2015 residential property price index was up 0.2 percent and 8.7 percent from the previous year. In Sydney, the RPPI dropped 1.6 percent on the quarter after increasing the last three years. On the year, Sydney prices were up 13.9 percent. In other capital cities in the December quarter 2015, the RPPI rose in Melbourne (1.6 percent), Brisbane (1.6 percent), Adelaide (0.9 percent), Canberra (2.8 percent), Perth (0.5 percent) and Hobart (2.5 percent) but fell in Darwin (down 1.8 percent ).

The data provide estimates of changes in housing prices in each of the eight capital cities of Australia along with a weighted average of the eight.

Home values affect much in the economy, especially the housing and consumer sectors. Periods of rising home values encourage new construction while periods of soft home prices can damp housing starts. Changes in home values play key roles in consumer spending and in consumer financial health. Rising prices increase consumers' ability to spend, based on wealth effects and from being able to draw upon expanding home equity lines of credit.