Darwin`s real estate market has slumped from an early peak. Graph: Glenn Campbell
Prices across the country fell 1.2 percent in the March quarter, according to state market reports from the Domain Group.
Darwin fell the most in the March quarter, 7.5 percent, followed by Sydney, down 2.6 percent.
Perth prices also fell from their peak in December 2014, when the median price was $6,16229. The median price of the Perth stand-alone house is now $553,486.
Perth`s markets have begun to show signs of recovery in recent years, but are also vulnerable to seasonal effects.
Local analysts say a recovery in Western Australia may help stabilise house prices, but it will take some time to see real growth.
The strongest performance was in Hobart, where house prices rose 2.7 percent, compared with 0.8 percent in Canberra and Adelaide.
Hobart`s annual growth is the strongest among all cities. Graph: Tamara Voninski
In Darwin, apartment prices also fell sharply, falling 15.9 percent in the quarter and 26.9 percent in the year.
Nicola Powell, a data scientist at the Domain Group, says Darwin has been an unstable market, and the latest report shows that this is still happening.
She pointed out that the market was affected by seasonal factors, so there were seasonal changes.
Darwin`s actual median price is back in 2008. Darwin is now the cheapest city for apartments. In March last year, the median price of Darwin`s apartment was $422,875, compared with $308999 this year.
According to a recent rental report by Domain, the median rent for separate homes and apartments in Darwin is also declining year by year, at $530 per week and $410 per week for apartments.
John Daley, chief executive of the Grattan Institute, a think-tank, said: "there was strong growth during the mining boom, and now it`s different." He said it was difficult for the government to intervene in the market.
"the factors driving regional economic growth and population growth are beyond the control of the government," he said. They can`t make the mining boom or stop it. "
"the government can make sure there are enough hospitals and schools, but Darwin already has them."
Quentin Killian, chief executive of the Northern Territory Real Estate Association, said there was growing positive news about Darwin`s economy.
Darwin has experienced 21 consecutive seasons of loss of interstate migration, Killian said. But recent news about the use of hydraulic fracturing to exploit shale oil is encouraging. This will stimulate the economy and bring more people to work in Darwin.
Independent median Home Price sources in Capital cities: Domain Group March Quarterly House Price report
On the other hand, Darwin`s rate of return on rent was so high that investors could consider buying lower-priced properties. "there`s a lot of bargains here," he said.
While Killian does not see an immediate improvement in the market, the size of Darwin`s leasing market means investors are quick to feel the impact of the recovery.
He said: "Darwin is a very small market, and the transition is very rapid." Here, there are up to a few thousand properties on the market, which can change in 12, 16, 18 months.
Median price source for apartments in capital cities: Domain Group March Quarterly House Price report
Elsewhere in Australia, Melbourne grew 8.8 percent a year, but rose only 0.1 percent in the quarter.
House prices in Brisbane were relatively stable, rising 1.5% over the past year, but fell 0.6% in the March quarter.
Prices in Melbourne and Hobart were driven by "very rapid population growth," Daley said.
In Brisbane, for example, the decline in apartment prices is not necessarily due to too much construction, he said.
"A lot of people say there`s an oversupply, but Brisbane doesn`t have a lot of vacant apartments," he explained. "some of them just cut prices and ask for sale."
"as prices began to fall, those who had previously been excluded from the market began to enter the market."
