Property Prices Up

Graeme Salt

Australian Property Monitors (APM) has released its March quarter house and unit price results. In the year to March 2013, APM recorded a 3.2% increase in national capital city house prices, but only a 0.7% rise in unit values. Looking at the capital city breakdown, surprisingly, Melbourne led house price growth, with prices jumping by 3.6% over the quarter. Darwin (+1.8%), Sydney (+1.6%), and Perth (+1.3%) also recorded solid gains, whereas prices in Adelaide (-0.8%) and Canberra (-0.4%) fell over the quarter. Unit price performance was mixed. Darwin (+3.6%) and Melbourne (+2.6%) reported particularly strong unit price growth over the quarter, whereas significant falls were recorded in Hobart (-5.0%), Canberra (-3.5%), Brisbane (-3.3%), Sydney (-1.6%), and Adelaide (-1.1%). The strong price growth in Melbourne, in particular, seems counter-intuitive, given the large amount of apartments under construction or recently completed.