Sydney, Melbourne prices bounce back in June

Sydney and Melbourne property prices rebounded in June after a pullback the month before, but there remains signs the national market was cooling as regulators tightened the screws on leveraged property investors.

Property consultant CoreLogic said its index of home prices for the combined capital cities rose 0.8 per cent in June, following a rare 1.1 per cent drop in May. Sydney and Melbourne drove the June increase, rising by 2.8 per cent and 2.2 per cent respectively.

Hobart (+2.8 per cent) and Canberra (+2.6 per cent) while Perth 9+1.4 per cent) was in positive territory but Darwin (-2.2 per cent) Adelaide (-1.7 per cent) and Brisbane (-0.5 per cent) went backwards. 

Annual price growth in Sydney ran at 12.2 per cent in June, down from a top of 18.9 per cent in March. Melbourne fared better, with prices up 1.5 per cent in the June quarter and 13.7 per cent for the year.

Annual growth in national prices also accelerated to 9.6 per cent, from 8.3 per cent the month before, though that was still down from a peak of 12.9 per cent in March.

The increase for the whole June quarter was also a modest 0.8 per cent, the smallest since late 2015, with Sydney (+ 0.8 per cent) recording a notable slowdown.

Any moderation will be welcomed by the Reserve Bank which is concerned that debt-fuelled speculation in property could ultimately hurt both consumers and banks.

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