House Prices Fall Across 40% Of Sydney
The market is feeling the effect of a slowdown.
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The first three months of the year has seen dwelling values drop in nearly two of five Sydney suburbs, while almost half of all Melbourne suburbs analysed posted value declines according to data from CoreLogic.
The market downturn appears to be gathering pace with 917 Sydney suburbs analysed and 354 recording a fall in median dwelling values. House prices in 189 Sydney suburbs slumped while 165 unit markets weakened during the same period.
Melbourne saw dwelling values across 303 suburbs drop during the same 3-month period — 154 house and 149 unit markets positing price falls.
According to Eliza Own, CoreLogic’s head of research, the largest price decrases were found in some of the most affluent parts of Sydney and Melbourne.
Areas such as Beaconsfield, Newtown and Camperdown notched up some of the sharpest house price falls, 7.2%, 5.8% and 5.7% respectively.
In Melbourne, Cremorne posted the largest house price decline of 6.4%, followed by South Yarra (-4.8%) and Toorak (-4.4%).
“High-end and inner-city areas are emerging as the first suburbs to experience this shift in market conditions,” Ms Owen said.
“It is likely that slightly tighter lending conditions and higher average fixed rates are hitting the very top of housing markets first.
Interestingly, this trend isn’t Australia wide with Brisbane posting a rise in median values across all 337 house markets analysed while only one out of the 171 unit markets posting a decline.
So too in Adelaide, where all 314 house markets in the analysis saw price increases and only two from the 105 unit markets saw a drop in values.
Elsewhere, Canberra saw dwelling values in seven out of 134 house and unit markets analysed record price decline while six from 55 house and unit markets In Hobart posted a drop.
Perth saw 13.4% of all suburbs analysed record a decline while 18% of the market logged value declines in Darwin.
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In signs that confidence is returning to the Australian property market, the combined capitals recorded their highest preliminary clearance rates since April last year, CoreLogic reports.
More than 2,290 homes went to market across capital cities last weekend with early data revealing a 71 percent clearance rate. This compares with a revised clearance rate of 64.2 percent last week. It marks the second busiest auction week to date this year.
Melbourne led the way, with 1,122 homes taken to auction. Of the 916 results collected so far, 73.5 percent were successful. It was a similar story in Sydney, with 791 homes to go under the hammer. Preliminary results indicate a clearance rate of 71.5 percent.
The smaller capitals including Brisbane, Adelaide and Canberra all experienced higher clearance rates week on week, with Adelaide out in front at 78.6 percent. It was a less spectacular result in Canberra, with a 59 percent clearance rate and in Brisbane at 56 percent.
In Perth, just three of the 13 auctions tallied so far were successful.
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