Melbourne leads property price plunge

Melbourne house prices are falling at the fastest rate in two-and-a-half years. Official data showed yesterday that house prices fell 2.5 per cent in the three months to March compared with the previous three months.

The Australian Bureau of Statistics quarterly house price index also revealed a bigger-than-expected 1.7 per cent drop across Australia's eight capital cities.

Westpac senior economist Matthew Hassan said the Australia-wide decline surpassed the market consensus for a 0.5 per cent fall.

"The housing market slowdown that began in June last year has carried into early 2011 but remains uncertain in magnitude," he said.

"Australia-wide, conditions may not be deteriorating more rapidly but they are also yet to show definite signs of stabilising."

Source: Herald Sun

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