Australian housing values finish the year on a low

Australian housing values experienced their greatest falls in 2022 since the 2008 Global Financial Crisis, CoreLogic data released today reveals.

After the monthly rate of decline moderated through September and November, values dropped a further -1.1 percent in December to record a -5.3 percent drop over the calendar year. It’s the biggest drop since 2008, when values were down -6.4 percent. The falls were greatest in Sydney, where values fell by -12.1 percent, followed by Melbourne at -8.1 percent and Hobart at -6.9 percent. The ACT also recorded a decline in values of -3.3 percent, while in Brisbane it was -1.1 percent.

However, values increased in other capitals, with Adelaide seeing a rise of 10.1 percent. Gains were more modest in Darwin at 4.3 percent and Perth at 3.6 percent.

After steady growth at the start of 2022, the downturn in housing values closely aligned with eight consecutive interest rate rises announced by the RBA since May.

“Our daily index series saw national home values peak on May 7, shortly after the cash rate moved off emergency lows,” said Corelogic’s research director, Tim Lawless. “Since then, CoreLogic’s national index has fallen -8.2 percent, following a dramatic 28.9 percent rise in values through the upswing.”

Predictably, the most significant falls were at the highest end of the market.

“The more expensive end of the market tends to lead the cycles, both through the upswing and the downturn,” Mr Lawless said. “Importantly, recent months have seen some cities recording less of a performance gap between the broad value-based cohorts.

“Sydney is a good example, where upper quartile house values actually fell at a slower pace than values across the lower quartile and broad middle of the market through the final quarter of the year.”

Despite the downturn in many parts of the country, CoreLogic reports that housing values still remain 11.7 percent higher in the combined capitals and 32.2 percent higher in the combined regional areas than they were pre pandemic.

There’s nothing more appealing than being able to cool off in your own pool on a hot summer’s day. For many Australians, the idea of a backyard pool is enticing but with so many styles to choose from, the decision is not always straightforward. Considering your budget, the needs of your household, along with the size of your outdoor space is key to achieving the best outcome for delicious days poolside. We take a deep dive into the best in pools to get you into the swim.

CLASSIC RECTANGLE

Nothing beats this classic pool design. With the ability to cross styles of architecture from Hamptons to mid century modern and minimalist design, the rectangular pool is a ‘one size fits all’ style that adapts to most needs, from swimming laps to splashing about with the kids. Go as big as you can manage on acreage or shoehorn it onto a suburban block for a clean, classic look that’s hard to top.

INFINITY POOL

Infinity Edge Swimming Pool | Blue Haven Pools — Blue Haven Pools

A popular choice where there are views of the water or bushland to enjoy, an infinity pool gives the illusion of having no edge. Also known as rimless, overflow or zero edge pools, the water flows over the edge of the pool into a catchment basin that sits below the waterline, out of sight. A great choice for elevated positions where the pool can create a visual bridge between the house and the view, an infinity pool is particularly expensive to install and run thanks to the continuous need to pump water from the catch basin.

LAGOON OR FREE FORM

Designed to mimic the natural environment, lagoon or freeform pools have fallen out of favour since their heyday in the 1980s. Despite the name, they are often available in standard sizes in fibreglass or concrete and are characterised by their curved, asymmetrical shapes. Slides and waterfalls are popular accessories to this style of pool while landscaping is typically tropical, in keeping with the oasis-like environment.

LAP POOLS

Lap Swimming Pools Builder in NSW | Blue Have Pools — Blue Haven

While the name might suggest that this style of pool is aimed at hard core swimmers, lap pools are a great choice where the obvious location for the pool is long and narrow. If doing laps or water therapy is the main purpose for installing the pool, consider installing swim jets which create non-stop resistance to swim against. A lap pool should be at least eight to 10 metres long to be useful.

PLUNGE POOLS

4 Creative Plunge Pool Designs — Pool & Spa

Nothing beats being able to cool off in your own backyard over summer and what plunge pools lack in space, they can make up for in amenity. While swimming is probably out of the question, plunge pools are generally easier and cheaper to maintain than their larger counterparts, making them an attractive option for heating and cooling. They also have the obvious advantage of being able to fit into most backyards.

SPOOLS (SPA POOLS)

What is a Spool? - Precision Pool and Spa — Precision Pool and Spa

Another great option where space is an issue, spa pools, also known as spools, offer the best of both worlds, with a spa area integrated into all or part of the pool. Known in some places as a cocktail pool, they can be a great solution for those who like to entertain or simply passively enjoy the water. Costs are generally a little less than a conventional pool and more than a dedicated spa.

PERIMETER OVERFLOW POOLS

For those who love the integrated look, perimeter overflow pools are a stylish choice. Designed in line with the edge of the deck, the water gives the impression of overflowing at all edges for a sleek, minimalist look. Water is captured and recycled in channels around the perimeter. Available in a variety of shapes and sizes, this style of pool can be pricey to install and run. For level sites though, it’s the ultimate in swimming luxury.

NATURAL POOLS

Natural swimming pool business is booming | The Fifth Estate — Natural Swimming Pools – Hampton Rock Pool

While conventional pools are kept clean through the use of chemicals such as chlorine, natural pools rely on moving water (via a pump) and biological filters such as plants to maintain good water quality. It’s a style gaining ground in Australia, where water quality is naturally quite high, making the move to natural pools easier, and more homeowners become interested in chemical-free options.

ABOVE GROUND POOLS

Green above ground pool in lush setting — Jeerayut Rianwed / Getty Images

The great advantage of this style of pool is that excavation is often minimal, which means less disruption – and less cost. Strictly speaking, there’s any number of materials available for construction, including fibreglass and concrete, but the above ground pool is probably most often associated with the old-school modular pool with liner from the likes of Clark Rubber.

GLASS WALLED POOLS

If you’re looking to add a little drama to your home, a glass walled pool could fit the bill. Essentially an underwater ‘window’ in recent years, architects have specified glass walled pools to be viewed from inside the house, with the benefit of drawing natural light through the water into internal spaces. An engineer will specify the exact thickness required to take the weight of the water but expect it to be at least 12mm thick.

What is the best type of swimming pool to build?

The type of pool you choose will depend on your budget and the size and style of your yard. Fibreglass pools come in a range of shapes and sizes and are faster and easier to install than concrete, mainly because they are made on the factory floor and delivered to site. Concrete pools take longer to build but they are customisable and can be finished in high end materials. Often, the decision can get down to how long you intend to stay in your property in terms of how much you want to invest.

What is the most expensive part of a pool?

If you’re talking about construction, excavation is often the big cost that takes owners by surprise. Make sure you understand excavation and tipping costs before signing a contract. Filtration, decking, tiling, fencing and landscaping can all add significant cost to the construction and installation of a pool. In terms of running costs, solar energy can be a good way to offset expenses.

What is a good size for a home swimming pool?

Again, this will depend on the size of your outdoor space, your lifestyle and the people who will use your pool. A family of four will have different needs to a couple who prefer to enjoy a dip at the end of a hot day. Choose a size that allows everyone to move around freely while keeping in mind that the larger the pool, the greater the time and money required to maintain it. Pool sizes in Australia have shrunk in recent years but popular sizes for family pools range from 7m by 3m up to 9m by 4m. Speak to your pool builder about the best – and safest – depth for your needs.