Sydney was the only city in Australia to show capital growth in February as the overall capital city median price showed no improvement, according to the latest figures from RP Data and Rismark.
The firms' latest Home Value Index has revealed that the market is 'treading water', with overall growth subdued. The average city dwelling value showed zero growth in February, although regional properties showed a minimal increase of 0.5% (seasonally-adjusted).
However, Sydney was the only city to show overall growth in February of 0.3%. The average dwelling price fell in every other capital, with Darwin showing the biggest fall of 9%.
Even so, While median house prices led negative growth - with only Sydney and Canberra showing growth of 0.1% and 3.9% respectively - units proved to be more robust, increasing in value in Sydney, Melbourne, Brisbane and Adelaide.
RP Data's senior research analyst, Cameron Kusher, believes that the outlook for Australian property remains 'very subdued'.
"Auction clearance rates have been a little weak, the number of homes advertised for sale is at the highest level it has been since we started collecting this data, and other lead indicators, such as the time it takes to sell a home, and the margin by which vendors have to discount their properties, are climbing again after reaching a plateau in recent months," he said.
These conditions are in the favour of prospective investors, he added.
"The large stock of homes available for sale should afford potential buyers increasing scope to negotiate on price and get the best possible deal."
Are units the best bet for capital growth in this market? Are you seeing widespread negative growth in your neighbourhood?
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out