Australian property prices have dropped for the fifth consecutive quarter, with declines being recorded across all capital cities for the first time since 2012, according to new data from the Australian Bureau of Statistics (ABS). 

Nationwide house prices fell 3.0 per cent this March quarter, while Hobart and Adelaide’s property markets experienced its first falls since the September quarter of 2012 and the March quarter of 2013, dropping by 0.4 per cent and 0.2 per cent respectively. 

These figures are contrary to the two cities’ performance last year, when housing prices rose by 8.8 per cent in Hobart and 1.7 per cent in Adelaide. 

Meanwhile, Australia’s 10.3 million residential homes have also dropped in value by $172.7 billion to $6.6 trillion this March quarter, with the median house price now standing at $636,900. 

ABS Chief Economist Bruce Hockman said the current slump has been driven by factors including stringent credit policy and lower buyer demand.  

“A continuation of tight credit supply and reduced demand from investors and owner occupiers has contributed to weakness in property prices in all capital cities this quarter,” Mr Hockman said.

“These results are in line with soft housing market indicators, with sales transactions and auction clearance rates lower than one year ago, and days on market trending higher,” he added. 

Sydney observed the steepest fall of 3.9 per cent this March quarter or 10.3 per cent over the past 12 months. Melbourne follows closely, with a drop of 3.8 per cent this quarter or 9.4 per cent through the year. 

Falls were also recorded in Darwin (-1.8 per cent), Brisbane (-1.5 per cent), Perth (-1.1 per cent) and Canberra (-0.9 per cent). 

Hobart and Adelaide remain the only two capital cities to record positive growths of 4.6 per cent and 0.8 per cent respectively since the last March quarter.