Property market takes dip with fall in capital city prices

PROPERTY prices in Australia's capital cities fell in October, interrupting a four-month run of recovery.

Brisbane property prices were up 0.1% for the quarter. . Picture: Heidi Costello

PROPERTY prices in Australia's capital cities fell in October, interrupting a four-month run of recovery.

The RP Data-Rismark home value index showed only Darwin (4%) and Perth (0.4%) recorded growth for the month.

Across Australia's eight capital cities the aggregate fall in value was -1%, with Hobart suffering the biggest month-on-month drop of -4.5%.

Darwin continued to be the shining light of all capital cities, with its year-on-year growth now sitting at 8.6%, with Perth next on 3.5%.

On a quarterly basis most capital cities experienced a rise in property prices, albeit marginal, with Hobart (-5.7%) and Canberra (-0.8%) the only cities where values were down for the three months.

In Brisbane property prices dipped by -0.9% in October, but were up 0.1% for the quarter.

Year-on-year the Queensland capital has experienced a drop in value of -0.8%.

RP Data research director Tim Lawless said the weak October results showed how precariously the Australian housing market was balanced.

"Whether the October decline is a blip on the path to a recovering market, or a sign of future weakness is yet to be seen," Mr Lawless said.