Sydney’s house prices fell for the first time in more than a year last month.
CoreLogic’s monthly Home Value Index shows that values rose by 0.2 per cent across Australia in September – led by a 0.3 per cent rise in capital city values.
But in Sydney, prices fell 0.1 per cent – the first monthly decline in the harbour city in 17 months.
Sydney’s quarterly result, a 0.2 per cent increase, was the slowest since values declined by 2.2% over the March quarter of 2016.
CoreLogic’s monthly Home Value Index shows that values rose by 0.2 per cent across Australia in September – but dropped by 0.1 per cent in Sydney
CoreLogic’s head of research Tim Lawless says the decline in the Australia’s most expensive housing market was due to the detached housing sector.
For the Sydney housing market, concerns around unit oversupply is less evident compared with the Brisbane unit sector, or to a lesser extent with Melbourne, he said.
‘Potentially the affordability challenges facing Sydney buyers within the detached housing sector are pushing more demand towards the medium to high density sector, where, based on median values, houses are almost $290,000 more expensive than units,’ he said.
Darwin was the only other capital to report a decline with prices falling 0.7 per cent.
CoreLogic’s head of research Tim Lawless also said the combined capital city trend growth rate is clearly losing steam
Sydney’s quarterly result, a 0.2 per cent increase, was the slowest since values declined by 2.2% over the March quarter of 2016
In Melbourne, prices climbed 0.9 per cent higher in September – and jumped by 2 per cent over the September quarter.
‘The stronger housing market conditions in Melbourne are supported by auction clearance rates which have consistently remained above 70 per cent,’ Mr Lawless said.
‘Additionally, advertised stock levels remain remarkably low and private treaty sales continue to sell rapidly, averaging 30 days on market.’
Hobart was the best performing market, with prices rising 1.7 per cent in September, after a recent history of sluggish growth.
The latest figures took national property values only 0.5 per cent higher over the September quarter, the slowest rate of quarter-on-quarter growth since June 2016. File photo
The past 12 months has seen prices in the Tasmanian capital surge 14.3 per cent higher, the highest annual growth since 2004.
However, the cost of housing remains substantially lower in Hobart than any other Australian capital – with a median unit value of under $320,000 and a typical house value of $412,340.
The latest figures took national property values only 0.5 per cent higher over the September quarter, the slowest rate of quarter-on-quarter growth since June 2016.
Mr Lawless also said the combined capital city trend growth rate is clearly losing steam with dwelling values rising by 0.7% over the September quarter and well down from the recent peak rate of quarter-on-quarter growth which was recorded at 3.5% over the December 2016 quarter.
‘This slowing in the combined capitals growth trend is heavily influenced by conditions across the Sydney market where capital gains have stalled,’ he added.