AU: Residential Property Prices

Mon Sep 18 20:30:00 CDT 2017

Actual Previous
Q/Q percent change 1.9% 2.2%
Yr/Yr. percent change 10.2% 10.2%

Australia's residential property price index rose 1.9 percent on the quarter in the three months to June, down slightly from 2.2 percent in the three months to March. Year-on-year growth in the index was unchanged at 10.2 percent.

The headline index is a weighted average of house prices for the capital cities of Australia's eight states and territories. House prices rose most strongly in Australia's two largest cities, Sydney and Melbourne, up 2.3 percent and 3.0 percent respectively on the quarter, and up 13.8 percent on the year for both cities. Prices, meanwhile, fell again in Perth and Darwin, two cities with larger exposure to the mining sector, down 0.8 percent and 1.4 percent respectively on the quarter, and falling by 3.1 percent and 4.9 percent respectively on the year.

Residential Property Prices 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.