Residential sales fell by 3.3% during the 2018-19 financial year due to weak housing prices and sluggish rental conditions, according to research from CoreLogic.

Sales dropped from the previous year and it was the only financial year since at least 2005-2006 with negative total residential returns, the research showed.

“The combination of falling values and historically low rental yields have driven total returns into negative territory,” said Cameron Kusher, CoreLogic senior research analyst.

The combined capital city returns fell by -4.5%, while the combined regional market returns increased 1.6%, according to the research.

In Sydney, residential returns fell -6.7%. Returns in regional NSW also dropped to -0.5%, the figures showed.

In Melbourne, returns fell -6%, with returns in regional Victoria falling to 4%, according to the figures.

In Brisbane, returns declined 1.7%. Returns in regional Queensland also dropped to 3.2%, the research showed.

In Adelaide, returns dropped to 4.1%, while returns in regional South Australia fell to 4%, according to the figures.

In Perth, returns fell -5.3%. Returns in regional Western Australia dropped -5%, the research showed.

In Hobart, returns declined to 8.1%, while returns in regional Tasmania fell to 11.4%, according to the figures.

In Darwin, returns dropped -3%. Returns in the Northern Territory also decreased to 7.8%, the research showed.

In Canberra, returns also fell to 6%, according to the figures.

“With early signs that the rate of decline in housing values has slowed in Sydney and Melbourne and rental yields rising across most regions of the country, the outlook for total returns over the coming year looks a little stronger at a national level,” said Kusher.