The residential property market in Australia stood out like a safe beacon as those in the rest of the world slumped but now the real estate industry is suffering a slide.
Property prices in state capitals have fallen for the sixth straight month in a row amid warnings rising interest rates could accelerate the slide further and financial market volatility could also affect prices.
Nationally values fell 0.2% in June, according to the latest RP Data-Rismark Hedonic Home Value Index. This follows a fall of 0.3% in May, 0.4% in April and 0.5% in March.
House prices in Australia are considered to be too high, having risen sharply over recent decades amid easy credit conditions. Global investors are keeping a close eye on what many perceive is the Achilles heel of the economy.