There have been many recent worries about fears in a crash in house prices in Australia's currently buoyant property market - but it has bucked those trends and continues to be resilient.

Figures released in September 2005 by the Australian Bureau of Statistics for the June qtr showed that established house prices across the 8 capital cities fell by a very modest 1 per cent over the quarter to be 0.1 per cent lower than 12 months earlier.

For new homes (minus land), prices edged up 1.1 per cent over the quarter to be 5.7 per cent higher than a year earlier, showing the increasing pressure that on the supply of building trades.

First Home Buyers are making up a large contingent of this strong market trend with increased prices not dissuading them from purchasing. The first home buyers grant (fhog) continues to be a strong motivator to get people buying their first home.

When comparing cities, over the three months, established prices fell in Sydney by 3.1 per cen

t. Rises were recorded over the quarter in Perth, up 3.8 per cent, Adelaide, up 1.5 per cent, Darwin, up 1.4 per cent, Melbourne, up 1.3 per cent, Brisbane, up 0.8 per cent, Canberra, up 0.3 per cent and Hobart, up 0.2 per cent.

For brand new homes (excluding the land cost) prices rose over the quarter in all cities except Melbourne. The biggest increase was recorded in Perth, up 3.6 per cent followed by Darwin, up 2.8 per cent, Canberra, up 1.1 per cent, Hobart, up 1.0 per cent, Sydney, up 0.9 per cent, Brisbane, up 0.5 per cent, and, Adelaide, up 0.3 per cent. Prices fell in Melbourne by 0.1 per cent.

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