Sydney and Melbourne's property boom is over, according to Domain's December House Price Report.
Sydney's median house price fell 3.1% in the December quarter to $1,013,258, the first quarterly fall since June 2012, and the sharpest fall for the harbour city on record. But for the year, Sydney house prices were still up a hefty 14.8%.
Sydney's median unit price fell 2.8% to $655,845, again the sharpest fall on record. But Sydney unit prices rose 8.7% for the year.
In comparison, Melbourne property prices remain on an upwards trajectory. The median house price rose 1.8% in the December quarter to $719,486, making annual growth of 14.5% for 2015. Melbourne units were up 1.3% for the quarter to $446,046, making a 5.2% increase for the year.
Sydney house prices only outperformed Melbourne's by 0.3 percentage points for the year.
Canberra property is recording solid growth, and markets in Adelaide, Hobart and Brisbane were firm. Property in Perth is steadying, but the Darwin housing market remains weak.
Dr Andrew Wilson, Domain's Senior Economist, said, "The higher mortgage interest rates initiated mid-year by financial regulators for both investors and owner-occupiers have demolished the previous booming markets of Sydney and Melbourne, while house prices continued to fall in Perth and Darwin as a consequence of the slowdown in the mining sector.
"Other capital city markets, however are now recording solid results, reflecting improving local economics and restored market confidence," he said.
Brisbane house prices rose 1.5% for the quarter to $511,361. Unit prices eased 1.1% to $359,965.
In Adelaide, the median house price rose 1.8% to $494,284, to be up 6.7% for the year - the best annual result since 2007.
Perth house prices recorded their fourth consecutive quarterly fall, with a 0.8% drop. Perth house prices fell 4.5% in 2015. Unit prices were up 1.5%, though were down 5.0% for the year.
In Hobart, house prices rose 7.9% in the December quarter to $359,837 - the highest quarterly rise in more than a decade. Hobart house prices rose 8.7% in 2015. Hobart unit prices fell 3.3% in the December quarter, to be up 7.1% for the year.
Canberra house prices rose 4.3% in the December quarter to $652,307, it's highest quarterly growth since 2009. House prices rose 9.0% for the year. Canberra unit prices rose 0.8% for the quarter, but were actually down 2.2% over the year.
The Darwin property market remained lacklustre. House prices fell 2.0% for the quarter to $636,854, to be down 1.0% for the year. Unit prices fell 0.4% over the quarter to $407,132, to be down 2.0% over 2015.
Property prices at record highs