Australian house prices drop for third consecutive month | Kanebridge News
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Australian house prices drop for third consecutive month

Sydney led the way with a 2.2% drop in the last month.

By Robyn Willis
Mon, Aug 1, 2022Grey Clock 2 min

Housing values fell in five of the eight capitals last month, according to CoreLogic’s national Home Value Index, with Australian dwelling values dropping -1.3 per cent over July. Sydney led the way with a -2.2 per cent drop, followed by Melbourne on -1.5 per cent. Hobart also recorded a -1.5 per cent decrease, followed by Canberra on -1.1 percent.

Brisbane recorded its first drop since August 2020 with values down by -0.8 per cent. Darwin saw the highest increase in values in July at +0.5 per cent, followed by Adelaide on +0.4 per cent and Perth on +0.2 per cent.

Regional markets have also softened, with NSW leading the way with a -1.1 per cent drop, followed by regional Victoria (-0.7pc), regional Queensland (-0.7pc) and regional Tasmania (-0.6pc). Regional South Australia (+1.1pc)  and regional Western Australia (0.1pc)  both saw values increase. Overall, regional markets continue to outperform capital cities.

CoreLogic’s research director Tim Lawless said housing values were already slowing before interest rates started rising but markets have weakened sharply since the first increase was announced on May 5.

“Although the housing market is only three months into a decline, the national Home Value Index shows that the rate of decline is comparable with the onset of the global financial crisis (GFC) in 2008, and the sharp downswing of the early 1980s,” he said. “In Sydney, where the downturn has been particularly accelerated, we are seeing the sharpest value falls in almost 40 years.”

Lenders such as Westpac and ANZ are predicting the Reserve Bank of Australia will announce another half a per cent rate increase this month, putting further pressure on cost of living.

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By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.