Australian real estate market was dragged down suburban luxury homes

The Australian capital city dwelling values fell far more than 1 percent in the three months to April, pulled down by losses within the luxury property marketplace, a survey released on Tuesday by Australia's property data and analytics provider RP Data shows.

Based on more than 85,000 home sales nationally in 2011, the market-leading RP Data-Rismark Home Value Index for the combined capital city dwelling markets declined by -0.3 percent in April, although dwelling values in Australia's capital cities have fell 1.2 percent inside the 3 months to April.

Over the year to April, dwellings in the most expensive capital city suburbs recorded a five.4 percent loss. In contrast, home values within the middle 60 percent of suburbs were down by only 0.9 percent, although dwellings within the cheapest 20 percent of suburbs had been the most beneficial performers, only losing 0.five percent.

Based on Tim Lawless, RP Data's research director, high-priced suburbs have helped drag the overall marketplace down.

"The luxury end of the housing market is also showing its volatility," Lawless stated.

"During the growth phase of the cycle probably the most pricey homes realized the highest capital gains," he said. "Yet as the market cools premium property values appear to be losing steam the fastest."

The survey also shows the national median dwelling price in capital cities is 468,000 AU dollars (501,600 U.S. dollars) based on sales over the 3 months to April.

Within the non-capital city markets, the national median price is really a far lower 325,000 AU dollars (348,300 U.S. dollars).

Across all Australian regions, the median dwelling price is presently 418,000 AU dollars (448,000 U.S. dollars).

While the slowdown in marketplace conditions was evident across all cities, Sydney and Canberra did well to stay within the black on a year-on-year basis.

Sydney dwelling values had been up 1.2 percent over the year to April, although Canberra dwelling values rose 0.7 percent.

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