Properties that are more expensive recorded a bigger price drop than those that are less expensive, according to the recent CoreLogic Decile Report.
The report, which divides the Australian property market into ten equal groups (or deciles) based on tiers of property value, found that the only market segment to post growth was the first decile, which included properties under $261,215. This segment recorded growth of 0.9% for the quarter and 1% for the year to December.
On the other hand, the 10th decile — Australia’s most expensive properties, which are valued at $1,104,592 or more – logged the biggest price decline. Prices were down by 9.6% year over year and 4.2% for the quarter.
CoreLogic also found that the ninth decile recorded price decreases of more than 5%. Values sank 6.5% for the year and 2.8% for the quarter.
The report found that values were also lower across most of the 10 market segments measured.
“The trends across each decile suggest stronger housing market conditions are persisting across the most affordable end of the valuation spectrum, potentially being supported by a surge in first-home buyer activity and mounting affordability constraints at the higher value end of the market," said Cameron Kusher, CoreLogic research analyst.
The trends across the nation also showed that more expensive properties were located in the capital cities, especially in Sydney and Melbourne. As a result, the overall weak performance of these two housing markets put a downward pressure on higher deciles, according to Kusher.
National dwelling values slid by 2.3% in the last three months of 2018 and by 4.8% over the 12 months to December— the largest annual decline since April 2009.
