Australia’s housing market crash is on track to be the worst ever with Sydney prices plunging by more than nine per cent in one year.
Real estate data group CoreLogic has produced new figures showing the downturn in Australia’s biggest property market will be worse than the lead-up to the early 1990s recession when interest rates were at a record high.
Sydney’s median house price in the year to November plunged by 9.2 per cent, with one suburb suffering a 12.1 per cent dive, as Melbourne’s market plummeted by 7.6 per cent.
Australia’s housing market crash is on track to be the worst ever with Sydney prices plunging by more than nine per cent in one year (pictured is Maroubra in the city’s south east)
The property market deterioration is affecting inner and outer-suburban areas, rich and poor, with Sydney home to eight of Australia’s 10 worst performing markets.
With Australia’s two biggest property markets, Sydney and Melbourne, on the slide the downturn is set to be the worst ever.
‘The downwards pressure on national dwelling values is largely confined to Sydney and Melbourne which together comprise approximately 55 per cent of the value of Australia’s housing asset class,’ CoreLogic head of research Tim Lawless said.
Since peaking in July 2017, Sydney’s house and apartment markets have plunged by 9.5 per cent.
Real estate data group CoreLogic has produced new figures showing the downturn in Australia’s biggest property market will be worse than the lead-up to the early 1990s recession
Between 1989 and 1991, when Australia was last in recession, Sydney’s housing market dived 9.6 per cent from peak to trough.
That was during a period when the Reserve Bank of Australia’s cash rate had surged to more than 19 per cent.
Despite low unemployment and record-low interest rates now of 1.5 per cent, CoreLogic is expecting Sydney’s property market to plunge by 15 per cent from the 2017 peak, a view shared by American investment bank Morgan Stanley.
Australia’s biggest property market hasn’t suffered a double-digit drop since the early 1980s.
Sydney was home to eight of Australia’s 10 worst performing housing markets, with Melbourne making up the other two (pictured is Maroubra in Sydney’s south-east)
Sydney was home to eight of Australia’s 10 worst performing housing markets, with Melbourne making up the other two in the year to November.
Property prices in Ryde, in the city’s north, have slumped by 12.1 per cent.
Melbourne’s inner east, which includes pricey Toorak and Prahan, slumped by 11.7 per cent.
Australian house rules
Sydney, down 9.2% to $935,713
Melbourne, down 7.6% to $768,929
Brisbane, up 0.6% to $542,273
Adelaide, up 1.4% to $469,822
Perth, down 3.8% to $475,067
Hobart, up 8.9% to $486,406
Darwin, up 5.1% to $510,650
Canberra, up 4.6% to $668,925
Source: CoreLogic home values index for the year to November 30 for median detached house prices
The news was also desire in outer suburban Sydney, with values in Baulkham Hills and the Hawkesbury diving by 11.3 per cent.
Sutherland Shire values in Sydney’s south fell by 10.9 per cent with Parramatta in the west diving by 10.3 per cent.
Inner-city areas were also hit, with Melbourne’s inner south falling by 9.4 per cent as Sydney’s inner-south west slid by 8.5 per cent and Sydney’s gentrified inner-west dropped by eight per cent.
The downturn has also affected rich and poor suburbs alike, with northern Sydney values plunging by 8.3 per cent as Blacktown, in the western suburbs, suffered an 8.1 per cent decline.
Sydney and Melbourne weren’t the only housing markets in decline, with Perth’s median house price sliding by 3.8 per cent.
Hobart was a bright spot in Australia’s housing market, with median prices rising by an annual pace of 8.9 per cent.
Median house prices also rose in Darwin (5.1 per cent), Canberra (4.6 per cent), Adelaide (1.4 per cent) and Brisbane (0.6 per cent).