ANALYSIS

Residential Property Price Indexes
	RPPI (a)	HPI	ADPI
	Sep Qtr 17 to Dec Qtr 17	Sep Qtr 17 to Dec Qtr 17	Sep Qtr 17 to Dec Qtr 17
	% change	% change	% change
Sydney	-0.1	-0.2	0.0
Melbourne	2.6	2.6	2.6
Brisbane	0.9	1.4	-1.2
Adelaide	0.6	0.7	0.2
Perth	1.1	1.3	-0.2
Hobart	3.9	4.0	3.9
Darwin	-1.5	-1.0	-2.8
Canberra	1.7	1.6	1.9
Eight capital cities	1.0	1.1	0.6

(a) See Explanatory Notes paragraph 50.


NOTES

The discussion of individual cities is ordered in terms of their significance to the change in the RPPI for the latest quarter.


Weighted average of the eight capital cities (1.0%)

The RPPI for the weighted average of the eight capital cities rose 1.0% in the December quarter 2017. This follows a fall in the September quarter 2017 (-0.2%) and a rise in the June quarter 2017 (+1.9%).

The RPPI rose 5.0% through the year to the December quarter 2017.

In the December quarter 2017 the HPI rose 1.1% and the ADPI rose 0.6%. Through the year to the December quarter 2017, the HPI rose 5.6% and the ADPI rose 3.4%.

The quarterly HPI result follows a flat result in the September quarter 2017 (0.0%) and a rise in the June quarter 2017 (+1.9%). The ADPI result follows a fall in the September quarter 2017 (-0.8%) and a rise in the June quarter 2017 (+1.9%).

Melbourne (2.6%)

The RPPI for Melbourne rose 2.6% in December quarter 2017. This follows rises in the September (+1.1%) and June (+3.0%) quarters 2017. The index rose 10.2% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 2.6% following a rise of 1.6% in the September quarter 2017. The ADPI rose 2.6% following a fall of 0.4% in the September quarter 2017.

For established houses, growth was predominately driven by the lower to middle ($540,000 to $905,000) segments of the market. Through the year to the December quarter 2017, the HPI rose 11.7%.

For attached dwellings, rises were observed in the middle to upper ($515,000 to $720,000) market segments. Through the year to the December quarter 2017, the ADPI rose 4.2%.

Perth (1.1%)

The RPPI for Perth rose 1.1% in the December quarter 2017. This follows falls in the September (-1.0%) and June (-0.8%) quarters 2017. The index fell 1.7% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 1.3% and the ADPI fell 0.2%. Through the year to the December quarter 2017, the HPI fell 1.3% and the ADPI fell 3.8%.

Brisbane (0.9%)

The RPPI for Brisbane rose 0.9% in the December quarter 2017. This follows rises in the September (+0.7%) and June (+0.6%) quarters 2017. The index rose 2.1% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 1.4% and the ADPI fell 1.2%. Through the year to the December quarter 2017, the HPI rose 2.7% and the ADPI fell 0.2%.

Hobart (3.9%)

The RPPI for Hobart rose 3.9% in the December quarter 2017. This follows rises in the September (+3.4%) and June (+1.8%) quarters 2017. The index rose 13.1% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 4.0% and the ADPI rose 3.9%. Through the year to the December quarter 2017, the HPI rose 12.6% and the ADPI rose 16.3%.

Canberra (1.7%)

The RPPI for Canberra rose 1.7% in the December quarter 2017. This follows a fall in the September quarter 2017 (-0.2%) and a rise in the June quarter 2017 (+1.3%). The index rose 5.7% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 1.6% and the ADPI rose 1.9%. Through the year to the December quarter 2017, the HPI rose 6.9% and the ADPI rose 1.4%.

Adelaide (0.6%)

The RPPI for Adelaide rose 0.6% in the December quarter 2017. This follows rises in the September (+0.7%) and June (+0.8%) quarters 2017. The index rose 3.6% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI rose 0.7% and the ADPI rose 0.2%. Through the year to the December quarter 2017, the HPI rose 3.5% and the ADPI rose 3.4%.

Sydney (-0.1%)

The RPPI for Sydney fell 0.1% in the December quarter 2017. This follows a fall in the September quarter 2017 (-1.4%) and a rise in the June quarter 2017 (+2.3%) . The index rose 3.8% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI fell 0.2% following a fall of 1.3% in the September quarter 2017. The ADPI was flat (0.0%) following a fall of 1.4% in the September quarter 2017.

For established houses, falls were observed across most of the middle to upper market segments, particularly in the middle ($1,030,000 to $1,715,000) segments. Through the year to the December quarter 2017, the HPI rose 3.5%.

For attached dwellings, falls were seen across most segments of the market, particularly in the lower to middle ($520,000 to $720,000) segments, offset by growth in the upper (+$1 million) market segments. Through the year to the December quarter 2017, the ADPI rose 4.6%.

Darwin (-1.5%)

The RPPI for Darwin fell 1.5% in the December quarter 2017. This follows falls in the September (-2.6%) and June (-1.4%) quarters 2017. The index fell 6.3% through the year to the December quarter 2017.

Over the December quarter 2017 the HPI fell 1.0% and the ADPI fell 2.8%. Through the year to the December quarter 2017, the HPI fell 4.9% and the ADPI fell 9.2%.

Total value of the dwelling stock



The preliminary estimate of the total value of residential dwellings in Australia in the December quarter 2017 was $6,869.0 billion (up from $6,776.1 billion in the September quarter 2017). Of this, $6,527.3 billion was owned by households.

Over the same period, the number of residential dwellings rose by 40,400 to 10,003,100 and the mean price of residential dwellings rose $6,500 to $686,700.



The mean price of residential dwellings in New South Wales ($896,000) remains the highest in the country followed by Victoria ($749,100) and then the Australian Capital Territory ($673,600). The lowest mean price is in Tasmania ($386,200).