ANALYSIS

Residential Property Price Indexes
	RPPI (a)	HPI	ADPI
	Sep Qtr 16 to Dec Qtr 16	Sep Qtr 16 to Dec Qtr 16	Sep Qtr 16 to Dec Qtr 16
	% change	% change	% change
Sydney	5.2	6.1	3.1
Melbourne	5.3	6.0	2.8
Brisbane	2.2	2.9	-1.3
Adelaide	1.8	1.7	2.4
Perth	0.3	0.8	-1.7
Hobart	4.5	4.4	5.4
Darwin	-1.5	-1.2	-2.5
Canberra	2.8	3.0	2.3
Eight capital cities	4.1	4.7	2.3

(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 (4.1%)

The RPPI for the weighted average of the eight capital cities rose 4.1% in the December quarter 2016. This follows rises in the September (+1.5%) and June (+2.0%) quarters 2016.

The RPPI rose 7.7% through the year to the December quarter 2016.

In the December quarter 2016 the HPI rose 4.7% and the ADPI rose 2.3%. Through the year to the December quarter 2016, the HPI rose 8.9% and the ADPI rose 4.0%.

The quarterly HPI result follows rises in the September (+1.6%) and June (+2.3%) quarters 2016. The ADPI result follows rises in the September (+1.2%) and June (+1.4%) quarters 2016.


Sydney (5.2%)

The RPPI for Sydney rose 5.2% in the December quarter 2016. This follows rises in the September (+2.6%) and June (+2.8%) quarters 2016. The index rose 10.3% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 6.1% and ADPI rose 3.1%. This was the third consecutive quarter of growth for the HPI and ADPI in Sydney after falls in the March quarter 2016 and December quarter 2015.

For established houses, strength was again seen across most segments of the market, particularly in the middle segments ($1,350,000 to $1,690,000). Through the year to December, house prices rose by 12.0%.

For Sydney attached dwellings, growth was mixed across segments though particularly strong in the mid to upper segments ($840,000 to $1,000,000). Through the year to the December quarter 2016, the ADPI rose 6.7%.


Melbourne (5.3%)

The RPPI for Melbourne rose 5.3% in the December quarter 2016. This follows rises in the September (+1.7%) and June (+2.7%) quarters 2016. The index rose 10.8% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 6.0% and the ADPI rose 2.8%.

For established houses, growth was seen across most market segments, but particularly the mid to lower ($550,000-$650,000) and mid to upper ($650,000-$1,000,000) segments of the market. Through the year to the December quarter 2016, the HPI rose 13.1%.

For attached dwellings, strength was mixed across market segments with the rise predominately driven by the mid to upper market segment ($550,000 to $730,000). Through the year to the December quarter 2016, the ADPI rose 3.2%.


Brisbane (2.2%)

The RPPI for Brisbane rose 2.2% in the December quarter 2016. This follows rises in the September (+0.2%) and June (+1.1%) quarters 2016. The index rose 3.8% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 2.9% and the ADPI fell 1.3%. Through the year to the December quarter 2016, the HPI rose 4.6% while the ADPI fell 0.3%.


Adelaide (1.8%)

The RPPI for Adelaide rose 1.8% in the December quarter 2016. This follows rises in the September (+0.9%) and June (+0.8%) quarters 2016. The index rose 4.1% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 1.7% and the ADPI rose 2.4%. Through the year to the December quarter 2016, the HPI rose 4.3% and the ADPI rose 2.9%.


Canberra (2.8%)

The RPPI for Canberra rose 2.8% in the December quarter 2016. This follows rises in the September (+0.8%) and June (+2.2%) quarters 2016. The index rose 5.5% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 3.0% and the ADPI rose 2.3%. Through the year to the December quarter 2016, the HPI rose 6.6% and the ADPI rose 2.0%.


Hobart (4.5%)

The RPPI for Hobart rose 4.5% in the December quarter 2016. This follows rises in the September (+2.3%) and June (+0.7%) quarters 2016. The index rose 8.8% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 4.4% and the ADPI rose 5.4%. Through the year to the December quarter 2016, the HPI rose 8.3% and the ADPI rose 11.6%.


Perth (0.3%)

The RPPI for Perth rose 0.3% in the December quarter 2016. This follows falls in the September (-1.6%) and June (-1.2%) quarters 2016. The index fell 4.1% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI rose 0.8% and the ADPI fell 1.7%. Through the year to the December quarter 2016, the HPI fell 3.8% and the ADPI fell 5.2%.


Darwin (-1.5%)

The RPPI for Darwin fell 1.5% in the December quarter 2016. This follows falls in the September (-1.2%) and June (-2.4%) quarters 2016. The index fell 7.0% through the year to the December quarter 2016.

Over the December quarter 2016 the HPI fell 1.2% and the ADPI fell 2.5%. Through the year to the December quarter 2016, the HPI fell 7.9% and the ADPI fell 5.0%.


Total value of the dwelling stock



The preliminary estimate of the total value of residential dwellings in Australia in the December quarter 2016 was $6,438.5 billion (up from $6,164.4 billion in the September quarter 2016). Of this, $6,114.1 billion was owned by households.

Over the same period, the number of residential dwellings rose by 39,600 to 9,802,700 and the mean price of residential dwellings rose $25,400 to $656,800.



The mean price of residential dwellings in NSW ($864,900) remains the highest in the country followed by Victoria ($690,100). The mean price in ACT ($642,900) is the third highest mean price. The lowest mean price is in Tasmania ($343,900).