Capital city house prices rose an average 0.2% in the December Quarter, reflecting a gain of 8.7% since December 2014, ABS data shows.

 

During the Quarter, Sydney house prices fell 1.6%, Perth recorded a 0.5% rise, Darwin fell 1.8% while Canberra prices rose 2.8%.

 

House price growth (the average across the capital cities) has been slowing since the middle of last year, primarily because of a slowing in the rate of growth in Sydney, the dominant market.

 

Interest rates have been kept at record lows since May last year, but financial markets expect one further cut late in the year.