ANALYSIS

Residential Property Price Indexes
	RPPI (a)	HPI	ADPI
	Dec Qtr 15 to Mar Qtr 16	Dec Qtr 15 to Mar Qtr 16	Dec Qtr 15 to Mar Qtr 16
	% change	% change	% change
Sydney	-0.7	-0.6	-0.6
Melbourne	0.8	1.4	-1.3
Brisbane	0.3	0.2	0.7
Adelaide	0.5	0.6	-0.4
Perth	-1.7	-1.8	-1.1
Hobart	1.1	0.9	2.3
Darwin	-2.0	-2.8	0.1
Canberra	-0.4	-0.1	-1.1
Eight capital cities	-0.2	0.0	-0.8

(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 (-0.2% RPPI)

The RPPI for the weighted average of the eight capital cities fell 0.2% in the March quarter 2016, the first fall since the September quarter 2012. The March quarter result follows a rise of 0.2% in the December quarter 2015 and a rise of 2.0% in the September quarter 2015.

The RPPI rose 6.8% through the year to the March quarter 2016.

In the March quarter 2016 the HPI was flat at 0.0% and the ADPI fell 0.8%. Through the year to the March quarter 2016, the HPI rose 7.4%, and the ADPI rose 4.9%.

The quarterly HPI result follows rises in the December 2015 (+0.2%) and September 2015 (+2.2%) quarters. The ADPI result follows a flat result of 0.0% in the December quarter 2015 and a rise of 1.6% in the September quarter 2015.


Sydney (-0.7% RPPI)

The RPPI for Sydney fell 0.7% in the March quarter 2016. This follows a 1.6% fall in the December quarter 2015 and a rise of 3.1% in the September quarter 2015. The index rose 9.7% through the year to the March quarter 2016.

Over the March quarter 2016 both the HPI and ADPI fell 0.6%. This is the second consecutive quarter of negative growth for the HPI and ADPI in Sydney.

For established houses, prices fell in the middle to lower market segment, ($1.3m and below). Through the year to the March quarter 2016, the HPI rose 10.3%.

For attached dwellings, the fall in Sydney was seen across most segments of the market particularly in the middle and lower segments ($460,000 to $700,000). Through the year to the March quarter 2016, the ADPI rose 8.2%.


Melbourne (+0.8% RPPI)

The RPPI for Melbourne rose 0.8% in the March quarter 2016. This follows rises in the December 2015 (+1.6%) and September 2015 (+2.9%) quarters. The index rose 9.8% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI rose 1.4% and the ADPI fell 1.3%.

For established houses, the rise in Melbourne was broad based, with almost all segments of the market showing price rises. Strata with prices above $1m contributed most to the rise. Through the year to the March quarter 2016, the HPI rose 11.5%.

For attached dwellings, the fall in Melbourne was predominately driven by strata in the mid-upper market segment ($515,000 to $825,000). Through the year to the March quarter 2016, the ADPI rose 3.9%.


Perth (-1.7% RPPI)

The RPPI for Perth fell 1.7% in the March quarter 2016. This follows a rise of 0.5% in the December quarter 2015 and a fall of 2.4% in the September quarter 2015. The index fell 4.5% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI fell 1.8% and the ADPI fell 1.1%. Through the year to the March quarter 2016, the HPI fell 4.7% and the ADPI fell 3.6%.


Brisbane (+0.3% RPPI)

The RPPI for Brisbane rose 0.3% in the March quarter 2016. This follows rises in the December 2015 (+1.6%) and September 2015 (+1.3%) quarters. The index rose 4.1% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI rose 0.2% and the ADPI rose 0.7%. Through the year to the March quarter 2016, the HPI rose 4.5% and the ADPI rose 2.1%.


Adelaide (+0.5% RPPI)

The RPPI for Adelaide rose 0.5% in the March quarter 2016. This follows rises in the December 2015 (+0.9%) and September 2015 (+1.2%) quarters. The index rose 3.1% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI rose 0.6% and the ADPI fell 0.4%. Through the year to the March quarter 2016, the HPI rose 3.7% and the ADPI rose 0.6%.


Darwin (-2.0% RPPI)

The RPPI for Darwin fell 2.0% in the March quarter 2016. This follows falls in the December 2015 (-1.8%) and September 2015 (-0.4%) quarters. The index fell 4.9% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI fell 2.8% and the ADPI rose 0.1%. Through the year to the March quarter 2016, the HPI fell 5.4% and the ADPI fell 3.6%.


Canberra (-0.4% RPPI)

The RPPI for Canberra fell 0.4% in the March quarter 2016. This follows rises in the December 2015 (+2.8%) and September 2015 (+1.3%) quarters. The index rose 4.6% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI fell 0.1% and the ADPI fell 1.1%. Through the year to the March quarter 2016, the HPI rose 6.1% and the ADPI fell 0.4%.


Hobart (+1.1% RPPI)

The RPPI for Hobart rose 1.1% in the March quarter 2016. This follows a rise in the December 2015 (+2.5%) and September 2015 (+0.5%) quarters. The index rose 4.2% through the year to the March quarter 2016.

Over the March quarter 2016 the HPI rose 0.9% and the ADPI rose 2.3%. Through the year to the March quarter 2016, the HPI rose 4.0% and the ADPI rose 5.0%.



TOTAL VALUE OF THE DWELLING STOCK

Quarterly Analysis



The preliminary estimate of the total value of residential dwellings in Australia in the March quarter 2016 was $5,931.0 billion (up from $5,915.6 billion in the December quarter 2015). Of this, $5,629.4 billion was owned by households. Over the same period, the number of residential dwellings rose by 39,000 to 9,661,500 and the mean price of residential dwellings fell $900 to $613,900.

The mean price of residential dwellings in New South Wales ($775,300) remains the highest in the country followed by Victoria ($636,100). The mean price in the Australian Capital Territory ($619,200) is the third highest mean price. The lowest mean price is in Tasmania ($327,800).