The Courier-Mail

HOUS­ING GROWTH SLOW­ING Win­ter chills price rises

- GARRY SHILSON-JOSLING LUCY HUGHES JONES

WIN­TER has cooled the Aus­tralian prop­erty mar­ket slightly with the pace of growth in hous­ing prices across the main­land state cap­i­tals slow­ing and new home sales fall­ing.

CoreLogic RP Data pre­lim­i­nary data showed prices in the main­land cap­i­tals rose 0.5 per cent in Au­gust, af­ter rises of 2.8 per cent in July and 2.1 per cent in June. Af­ter prices rose 1.1 per cent in Au­gust last year, the latest monthly rise sug­gested an­nual growth slowed to about 10.5 per cent in the year to Au­gust, from 11.1 per cent over the year to July.

CoreLogic RP Data head of re­search Tim Law­less said the monthly growth slow­down was most ev­i­dent in Mel­bourne, where prices were rel­a­tively flat, up only about 0.1 per cent on av­er­age in the first four weeks of Au­gust, com­pared with the July av­er­age.

Syd­ney prices were up about 1 per cent. The data for Bris­bane and other de­tailed fig­ures would be re­leased to­day. Mean­while, Hous­ing In­dus­try As­so­ci­a­tion data showed new home sales eased 0.4 per cent in July, af­ter ris­ing 0.5 per cent in June.

But HIA chief economist Har­ley Dale said house sales re­mained strong, drift­ing along at his­tor­i­cally high lev­els through midyear.

“It ap­pears that the cycli­cal peak for to­tal new home sales oc­curred in April but the sub­se­quent down­ward trend is very mild,” he said yesterday.

Dr Dale said there was lit­tle prospect for fur­ther growth in new home con­struc­tion in 2015-16 but af­ter three years of strong growth that helped prop up the do­mes­tic econ­omy, he said Aus­tralia was in for another healthy year. De­tached house sales rose 0.7 per cent in July, while multi-unit sales fell 4.2 per cent.

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