House prices drop slightly in Sydney and Melbourne

The Sydney skyline with Sydney Opera House in the foreground. Photo: Getty

Australia’s home-price growth decelerated in December and the two biggest markets edged lower, as the risk of renewed interest-rate hikes weighed on both sentiment and the outlook for property in the year ahead.

The Home Value Index in major cities advanced 0.5pc from a month earlier, with both Sydney and Melbourne dipping 0.1pc, property consultancy Cotality said. Mining hub Perth and the southern city of Adelaide led gains at 1.9pc apiece, followed by 1.6pc rises in both Brisbane and Darwin.