National dwelling values fell in the March quarter

By |

Dwelling value growth throughout Australia has officially come to a halt, with national dwelling values falling by -0.5% over the March quarter. Although the quarterly rate of decline has slowed compared to recent months, it was still the largest fall in values over a first quarter of the year since 2016, according to CoreLogic’s Quarterly Review for Q1 2018.  

Over the 12 months to March, values rose by 1.2%, much lower than the 9.1% recorded a year earlier, and the slowest annual rate of growth since December 2012.

The slowdown in dwelling value growth is occurring in most capitals, with Brisbane and Hobart the only two cities to have recorded value falls to-date. Sydney—Australia’s largest and most expensive housing market—is leading the current slowdown, with values dropping by 3.9% from their peak.

Perth and Darwin have been in serious decline for a number of years, with values dropping by -10.8% and -21.6% respectively. The falls in Melbourne (-0.7%), Adelaide (-0.4%), and Canberra (-0.2%) have been fairly minor to-date.

“The decline in dwelling values across most capital cities is interesting. A fall in values in Sydney and Melbourne is somewhat understandable given surging values over recent years which have led to deteriorating housing affordability and record low rental yields,” CoreLogic said. “Furthermore, investors were a key driver of demand and increased regulation, leading to higher interest rates [which led] to a slowing of demand from this segment.

“But outside of Sydney and Melbourne, values have not really surged nor have investors comprised a larger than normal proportion of market activity. The recent weakness is likely linked to overall housing market sentiment and tighter credit policies impacting on other capital city markets.”

While capital city housing markets are seeing weakened conditions, regional markets, particularly those in lifestyle areas close to capitals cities, are faring much better.

Geelong is now experiencing a faster rate of annual growth than Melbourne. Annual growth in Illawarra, as well as Newcastle and Lake Macquarie, is now stronger than in Sydney.

The Gold Coast and Sunshine Coast have recorded stronger annual value growth than Brisbane.

“It seems that many of those who have seen the value of their properties rise substantially in Sydney and Melbourne over recent years may be cashing out and moving to lifestyle markets where housing costs are much lower than those in these capital cities,” CoreLogic said. “Additionally, the more affordable price points are likely seeing demand ripple away from Sydney and Melbourne as buyers look to purchase within their budgets.”

 
Related stories:
 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : lalor park , bendigo , st peters , glendenning , leumeah

go back

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here