1st August 2012: House prices rise against expectations

Australian capital city house prices rose in the June quarter, beating expectations of a fall, according to the Australian Bureau of Statistics.

The data showed the weighted average of house prices across Australia's eight capital cities rose 0.5 per cent in the June quarter. The result compares with an upwardly revised 0.1 per cent fall in the previous quarter.

Analysts had expected the data to show prices fell by 0.7 per cent in the three months to June. Average home prices are now 2.1 per cent weaker than one year ago, beating expectations of 4.2 per cent difference.

The result was buoyed by a significant rise in Darwin house prices, as well as gains in Sydney, Perth and Adelaide. According to the ABS, Darwin house prices rose 5.1 per cent in the three months to June, while Sydney price gained 1.4 per cent. In Adelaide, prices lifted 0.5 per cent, while a 0.6 per cent rise was recorded in Perth.

The remaining capital cities recorded fall, with Melbourne prices easing 0.4 per cent, Canberra slipping 1.3 per cent and Hobart dropping 0.4 per cent.

Source: Business Spectator