(April 30th, 2010)

AFTER a year of surging prices, the pace of growth is finally easing, with the country's median house price rising 3 per cent in the March quarter -- down from nearly 5 per cent growth in the previous three months.

According to residential researcher Australian Property Monitors, five interest rate rises and the December expiry of the first-home owners grant boost had eased price growth, but not before pushing Sydney's median house price to more than $600,000.

In Melbourne, the median house price hit $549,980, up 6.8 per cent for the March quarter, The Australian reported. Melbourne's house prices jumped 27 per cent over the past 12 months, double that of Sydney, where house prices increased by 14.7 per cent.

Brisbane was the only capital to record a fall, with house prices slipping 0.1 per cent in the March quarter, but up 9.1 per cent for the year to a median of $451,388.

In Perth, house prices rose 1.1 per cent for the quarter and 9.4 per cent for the year to a median of $519,526, according to APM. The rapid recovery of the top end of the residential market, which is less sensitive to interest rates, is dragging up median prices.

AMP economist Matthew Bell said the price growth for houses in the most expensive half of the market was nearly double that of the more affordable suburbs.

In Melbourne, the top 50 per cent of suburbs showed price growth of 38 per cent for the year, compared with the bottom half at a still strong 21 per cent. Sydney's top half of suburbs grew at 21 per cent and the bottom half at 10 per cent, according to APM.

Apartment prices around the country grew, if not at the pace of houses, capital city figures varying between a fall of 4.5 per cent for Hobart and a rise of 13.7 per cent in Melbourne. Mr Bell said while overall price growth was positive in most markets, the market would slow this year.

(Source from: news.com.au)