House price index in Australia dropped by 0.7 percent quarter-on-quarter in the three months to June of 2018, the same pace as in the previous quarter but beating market consensus a 7 percent decline. It marked the second straight quarter of fall in the index, as prices continued to decline in Sydney (-1.2 percent vs -1.2 percent in Q1); Melbourne (-0.8 percent vs -0.6 percent); Perth (-0.1 percent vs -0.9 percent); and Darwin (-0.9 percent vs -1.1 percent). On the other hand, prices increased in Adelaide (0.3 percent vs 0.5 percent); and Canberra (0.6 percent vs 0.9 percent), while rebounded in Brisbane (0.7 percent vs -0.6 percent). Through the year to the second quarter, residential property prices decreased by 0.6 percent, the first annual fall since the June quarter 2012. Housing Index in Australia averaged 1.60 percent from 2002 until 2018, reaching an all time high of 6.10 percent in the second quarter of 2002 and a record low of -2.20 percent in the third quarter of 2008.
Housing Index in Australia is expected to be -0.50 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 -0.57 in 12 months time. In the long-term, the Australia House Price Index is projected to trend around 2.10 percent in 2020, according to our econometric models.