According to APM’s latest Quarterly Housing Report, after a strong end to 2013, all capital housing markets have recorded “softening growth rates” over the March quarter.
“Sydney clearly remains the strongest performing capital city; however, growth rates are significantly less than that recorded over the December quarter,” APM said in a statement.
“The median house price rose by +3.1 per cent over the March quarter, down from the extraordinary +5.1 per cent increase seen during the three months to December. Unit prices were up by +2.6 per cent, softening from the +3.2 per cent growth recorded over the previous three month period,” APM added.
APM senior economist Dr Andrew Wilson said the Sydney boom has “well and truly faded”, with house and unit price growth at their lowest rate since March last year.
“The moderation of boom-time results in Sydney can be expected to continue as emerging affordability barriers and declining investor activity impacts the market,” he said.
“Nationally, the December quarter 2013 is likely to be the high water mark in the cycle for growth rates.
“Following the impact of historically low interest rates, local supply and demand factors are reasserting their predominant influence, particularly in regard to employment and incomes growth,” he added.