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Australian home value declines hit record lows

Australian homeowners brace as we may not have reached the bottom of the cycle yet

By Robyn Willis
Mon, Jan 9, 2023 10:39amGrey Clock < 1 min

Australian home values have hit a record low, data from CoreLogic has just revealed.

The CoreLogic Daily Home Value Index showed a -8.4 percent decline on January 7 after a high on May 7 2022, exceeding the previous record of peak-to-trough declines of -8.38 percent between October 2017 and June 2019.

Australian homeowners may be in for further declines, with more falls expected.

CoreLogic says last year’s consecutive rate rises following on from a 300 basis point increase in the cash rate are responsible for the sharp fall as borrowers struggle to finance home purchases.

The Reserve Bank of Australia has increased the cash rate in an attempt to draw down inflation in 2023.

Increasing strain on households, CoreLogic notes that right now Australians are carrying more debt than through historic periods of rate rises. In addition, post lockdown spending and higher inflationary pressures may have resulted in less household savings which could be used as a home deposit.

The three largest capitals have experienced the greatest falls, with Sydney seeing a peak-to-trough decline of -13 percent, followed by Brisbane on -10 percent and Melbourne at -8.6 percent. To put the falls in perspective, the significant drops follow an unprecedented national home value rise of 28.9 percent between September 2020 and May 2022. At the end of last year, CoreLogic data shows that home values were still 16 percent higher than they were five years ago.

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THE SEASIDE APARTMENT THAT THINKS IT’S A HOUSE

This property delivers on all the best bits of living in Sydney without the high maintenance

By KANEBRIDGE NEWS
Fri, Feb 3, 2023 < 1 min

For Sydneysiders attracted to the dual amenities of a beach location and city services, it is hard to imagine a better address than this apartment at Grande Esplanade, Manly.

Positioned across the road from the harbourside beach and Manly Wharf, this three-bedroom, two-bathroom property enjoys the ideal mix of privacy and accessibility to shops, restaurants and public transport, as well as being a stone’s throw from the water. Now on the market since the passing of the original owners, Ian and Dorothy Hales, who bought the apartment off the plan, it’s a rare opportunity for families, downsizers or professional couples with ‘work from home’ arrangements to achieve work/life balance in a covetable setting. The former owners found the property well suited to ageing in place, with indoor and outdoor living spaces to enjoy, as well as easy access.

With a generous 322sqm floorplan on title, the light-filled third floor apartment has direct access to shared gardens, which are maintained by building management, making the property feel more like a house. The former owners used the gardens to host family events, including a wedding during COVID, and it’s a great vantage point for watching the New Year’s Eve fireworks on the harbour.

With a $6 million price guide, it is sure to attract strong interest as a low maintenance, high amenity option.

 

Address: 303/54 West Esplanade, Manly

Auction: 10am February 25, 2023

Next inspection:

Price guide:

Agents: Jake Rowe 0414 612 546; Nathan Tse 0411 386 455 The Agency

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