House prices plummet in September quarter

Australian property prices have taken a huge hit, with the ABS House Price Index revealing a national drop of 1.8% in the three months ended 30 September.

Australian property prices have taken a huge hit, with the ABS House Price Index revealing a national drop of 1.8% in the three months ended 30 September.

Brisbane has seen the sharpest decline, dropping 3.3%, with Canberra following at 2.5% and Melbourne at 1.9%. Sydney followed the national average with a decline of 1.8%, while Perth dropped 1.1%. Adelaide only suffered a minor fall of 0.1%.

The only cities to see increases were Hobart, up 0.7% and Darwin, up 0.1%.

Meanwhile, after last week’s disappointing auction results, clearance rates this week have improved – but not by much.

Sydney suffered a decline last week to just 46%, but improved by merely one percentage point this week to 47%. Sales totalled $99.4 million with 130 properties.

Melbourne’s clearance rate jumped from just 53% to 66%, with only 176 properties offered because of the Derby Day races. There were 116 properties sold for a total of $71.2 million.

Brisbane saw a small increase to 30% from last week’s 28%, while Adelaide fell from last week’s 68% to 39% – but only with nine properties were sold totalling $3.6 million.

In a move that may dampen property purchases for first-home buyers and small businesses owners, ANZ has announced it will no longer offer its low-doc 80 loans.

Low-doc 80 loans require buyers to produce 20% of the purchase price up-front, but they are then immune from having to provide proof of income. The loans are popular with the self-employed, whose income levels may often fluctuate.

ANZ will cease to offer the loans from the end of the next week, but will continue with its low-doc 60 loans which require a 40% down-payment.

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