Sydney house prices are down, but not out, new data reveals
Australia’s most expensive city feels the impact of successive rate rises, but it’s not alone as prices trend downwards around the capitals
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Sydney house prices have fallen more than 10 percent since February this year, CoreLogic reports.
The property data service revealed that Sydney home values are down -10.1 percent, or $116,500. Research director for CoreLogic, Tim Lawless said as Australia’s most expensive capital city, it was ‘unsurprising’ that Sydney had experienced the greatest decline following six consecutive rate rises and record low affordability this year.
“Although Sydney’s housing values were already in decline when the rate hiking cycle began, the pace of decline accelerated sharply following the first interest rate increase in May,” he said.
“Sydney values are now down –9.5 percent since 3 May, and -10.1 percent since peaking on 13 February this year.”
Melbourne property prices have also fallen this year at -6.4 percent since January. The results were similar in Brisbane, which has experienced a -6.1 percent decline. In Hobart and Canberra, the monthly Home Value Index revealed falls of -4.7 percent and -4.4 percent respectively.
Results were steadier in Adelaide and Perth, where prices have fallen less than -1 percent since peaking in August. Darwin is the only capital where prices have not declined.
Despite the bleak results in Sydney, Mr Lawless said there’s no need for concern just yet.
“Despite the -10.1 percent decline so far, Sydney home values still have a way to go before wiping out the capital gains accrued over the recent growth cycle. Home values would need to fall a further -11.4 percent to get back to the levels seen at the onset of COVID,” Mr Lawless said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The construction sector is roaring back to life in some Australian states while others languish in the doldrums
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The home building market is on the rebound as building approvals rise, new data reveals.
Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.
Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.
Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.
In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
