According to the RP Data-Rismark Hedonic Home Value Index this is the biggest month-on-month fall since April 2008.
The June outcome follows on from a clear trend of decline in monthly seasonally adjusted growth rates in Australia's capital cities this year.
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Over the June quarter, Australian dwelling values remained flat with effectively no growth (+0.1 per cent in seasonally-adjusted terms). This represents a striking deceleration in the quarterly rate of increase in home values.
Since the start of 2009, the average quarterly capital growth realised by dwellings located in Australia's capital cities has been 3 per cent (seasonally-adjusted).
In the June quarter, all capital cities experienced virtually no or negative growth with the exception of Adelaide where dwelling values rose by a respectable 1.1 per cent.
Dwellings in Sydney (+0.5 per cent), Melbourne (+0.2 per cent), Brisbane (-1.3 per cent), Perth (-2.5 per cent), Darwin (-0.1 per cent) and Canberra (-0.8 per cent) all experienced a marked reduction in growth rates in the June quarter from the 3 per cent per quarter pace witnessed since the beginning of 2009.
Despite the recent moderation in capital gains, the risk of a dramatic decline in Australian dwelling values remains remote.
Tim Lawless, the RP Data's national research director, said:
“As the RBA has independently confirmed, arguments in favour of house price “bubbles” remain, in my opinion, overstated.”
