House price index in Australia dropped by 0.7 percent quarter-on-quarter in the second quarter of 2019, less than market expectations of a 1.0 percent fall and following a 3.0 percent decline in the previous quarter. It was the smallest drop since Q2 of 2018, as prices of properties fell softer in most of the capital cities: Sydney (-0.5% vs -3.9%), Melbourne (-0.8% vs -3.8%), Brisbane (-0.7% vs -1.5%).In addition, prices rebounded in Canberra (0.2% vs -0.9%);Hobart (0.5% vs -0.4%). Meanwhile, prices continued to drop in Perth (-1.4% vs -1.1%),Adelaide (-0.6% vs -0.2%).Through the year to June, home prices tumbled 7.4%, unchanged from the prior quarter. "Sydney and Melbourne housing markets have seen residential property price falls moderate this quarter. A number of housing market indicators, such as auction volumes and clearance rates, have begun to show signs of improvement, though they remain below the levels seen one year earlier," said ABS Chief Economist, Bruce Hockman. Housing Index in Australia averaged 1.43 percent from 2002 until 2019, reaching an all time high of 6.10 percent in the second quarter of 2002 and a record low of -3 percent in the first quarter of 2019.
Housing Index in Australia is expected to be -0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Housing Index in Australia to stand at 1.30 in 12 months time. In the long-term, the Australia House Price Index QoQ is projected to trend around 2.10 percent in 2020, according to our econometric models.