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Australian Capital Cities Record Monthly Housing Price Fall in July, ANZ Says

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Most of Australia's capital cities recorded monthly housing price falls in July, with capital city housing prices declining 9.6% on a three-month annualized basis, ANZ Research said in a report on Tuesday.

Sydney and Melbourne continue to look weakest, with prices down 1.4% month-over-month and 1.2% month-over-month, respectively. Over the year, Sydney and Melbourne housing prices have declined about 5%. Canberra housing prices fell by 1% month-over-month in July.

Darwin was an outlier, with prices rising 0.8% month-over-month and 7.1% year-to-date.

The pace of growth is expected to ease over the remainder of the year despite recent housing credit data continuing to hold up.

Auction clearance rates have been below 50 for the last nine weeks, and current clearance rates are consistent with the housing price pulse falling about 10%, the report said.

Housing credit growth was steady in June. The pace of growth eased to 1.8% quarter-over-quarter in the June quarter from 1.9% in the March quarter.

Building approvals rose 7.2% month-over-month in June, driven by a 17.8% rise in private units/townhouses over the period. Approvals are expected to trend lower over the second half of the year as feasibility concerns limit demand.

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