of Sydney are a sign of a healthy economy, economists say.
potentially stronger gains.
months of the year, more than the national average of 1.
1 per cent, Price Index report.
But the nation's largest housing market, Sydney, bucked the national trend to post a 0.4 per cent decline in the March quarter, growing at a rate of just 1.
5 per cent in the past year.
had affected the national housing market.
the lows of 2004-05, annual growth rates are far below those experienced at the peak of the house price boom in 2003.
"Nonetheless, in aggregate, strong prices for housing remain well supported by tightening housing market fundaments, low rental vacancy rates and strong household incomes.
economy remains buoyant."
The mining boom continues to prop up Perth prices, which climbed a further 2.
1 per cent in the March quarter, and by a chunky 32.1 per cent over the year.
Prices in all other states and territories also increased.
In the quarter, Hobart led the way with a 3.8 per cent increase, followed by Brisbane at 2.9 per cent, then Darwin at 2.
8 per cent.
Then came Perth, followed by Adelaide with a 1.7 per cent increase, Canberra at 1.
2 per cent.
Darwin would lose momentum.
"This quarter's data shows that the mining boom beneficiaries, Perth and Darwin, continue to outperform," Ms Tan said.
"In contrast Sydney, a victim of its own status as Australia's most expensive city, is still the laggard.
in this city, and with an estimated shortage of dwellings, we expect Sydney's housing sector to improve.
"The trend in Perth and Darwin, however, where annual house Ms Tan said a very low vacancy rate of 1.
3 per cent, based on data from state-based Real Estate Institute branches, was powering the housing sector.
first collected.
in its recovery.
"Another supporting factor is that with inflation under control, stable."
prices in nine of the past 12 quarterly readings.
"Interestingly, if Sydney house prices start to improve over coming quarters, as seems likely, the national average annual gain in house prices will jump above 10 per cent.
"Other than in Sydney, house prices are inflating quite rapidly prices later in 2007.
"By the second half of 2007, the Reserve Bank may need to focus inflation as well."
hold.
remain on hold in the foreseeable future, another increase in market that has emerged in Sydney, and may emerge in other "Meanwhile, house prices in the mining-dependent states will remain highly dependent on the commodity price cycle."
interest rate rises.
no longer stimulating the expensive Perth market.
peaked in WA, and remain less stimulatory elsewhere," they said in a note.
Sydney, lagging behind the rest of the nation in house price growth, has fallen 8.3 per cent since 2003.
quarter.
monetary policy.
He's a bona fide Hollywood star, and Steven Spielberg and Brad Pitt are among his fans, but what Eric Bana treasures most is his life as a suburban dad.
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