Housing market holds up despite economic gloom

By Maurice Dunlevy, The Australian, 1 May 2009

THE residential housing market kept its head above water in the March quarter, as Australia was sinking into recession.

Data released yesterday by two of the largest property research groups confirmed residential markets were stable nationally.

Australian Property Monitors and RP Data were at odds as to whether house prices were up or down in Sydney and Brisbane, but they agreed the market had shown remarkable resilience.

"Housing and unit figures show a surprisingly resilient residential property market amidst the global and domestic economic turmoil,'' APM economist Matthew Bell said.

RP Data research director Tim Lawless concurred, saying: "Australia's residential property market has proven to be consistently resilient.''

APM figures showed a nationwide March quarter price gain of 0.1 per cent, with Melbourne and Darwin the only capitals to record house and unit price rises.

Darwin recorded a 1.5 per cent increase for houses and 9.3 per cent for units.

Melbourne house prices rose 1.6 per cent to a median price of $444,595. It was Melbourne's second consecutive quarter of growth.

APM said Sydney's median house price fell from $531,111 to $529,926 between December and March, while the median unit price rose 1 per cent from $364,314 to $367,751.

The increase was the first since December 2007, but for the year to March unit prices were down 1.2 per cent.

According to APM, Brisbane house prices fell 0.5 per cent - or $2266 - in the March quarter to a new median of $414,909. Units fell 2.1 per cent, from $341,088 to $334,015.

The RP Data-Rismark national property values indices show an overall 1.6 per cent rise in national dwelling values.

The indices show Sydney house prices up 2.39 per cent to $565,928, and units up 2.54 per cent to $430,413.

RP Data said Brisbane's median house price rose 1.42 per cent to $449,757, and unit prices increased 0.41 per cent to $330,390.

Mr Lawless said the first-quarter figures showed Australia's housing market continued to defy sceptics.

Meanwhile, international property consultancy Langdon said Australia's high-rise apartment sector was showing the first signs of recovery because high rental demand and low interest rates were attracting investors back to the market, particularly in Brisbane and Melbourne.