Australian suburbs where house prices have plunged the most

Australian suburbs in Liberal electorates have seen the steepest decline in house prices, a new report has revealed. 

Figures obtained by real estate group Domain show a majority of affluent districts in the country’s eastern coast have been experiencing the worst of the country’s crisis.   

A list of 20 districts with the highest declines show nine of the affected areas are in Victoria and 11 in New South Wales.  

Plunging house prices appear to be more common in Liberal districts, however the largely Labor-held division of Macnamara, in Melbourne’s south, tops the list after seeing a 29.4 per cent dive in the past year.  

The largely Labor-held division of Macnamara, in Melbourne’s south, tops the list after seeing a 29.4 per cent dive in the past year. The division, a wealthy, inner-city electorate represents most of what used to be called Melbourne Ports before it was renamed in 2018, and includes Albert Park, Caulfield, South Melbourne and St Kilda

Macnamara, a wealthy, inner-city electorate represents most of what used to be called Melbourne Ports before it was renamed in 2018, and includes Albert Park, Caulfield, South Melbourne and St Kilda.  

The median house price in the area is $1,200,000 and residents earn an average $1,866 a week – well above the national average. 

Chisholm, a Liberal-held district which includes Melbourne eastern suburbs such as Burwood and Blackwood, comes in second place with a drop of 19.6 per cent.

Kooyong, in the city’s inner-east, and Higgins, which includes south-eastern suburbs, both saw house prices fall by an even 19 per cent. 

In NSW, Bennelong, which includes Macquarie Park, Marsfield, Chatswood West and Eastwood, suffered the worst drop in prices in the state with 18.5 per cent. 

Economist Shane Oliver told Daily Mail Australia the price drops in wealthy suburbs is due to a combination of a large increase in supply of apartments as well as difficulty in obtaining loans.

It also follow five years of very strong prices.

Domain economist Trent Wiltshire said it could also be due to the types of homes on the market.  

‘Higher priced houses generally held by owner-occupiers aren’t changing hands much, whereas there’s more activity at the lower end of the market, contributing to the big decline,’ he said.

Eleven districts in NSW, including North Sydney, Bennelong and Grayndler have seen house prices plunge

Prices in North Sydney, which includes Kirribilli, Milsons Point and Middle Cove, dropped by nearly 12 per cent 

It is also believed home buyers and sellers are waiting until after the federal election to make a move. 

David Wood, director of Hocking Stuart in Albert Park, which has seen some of the worst declines, said residents feel the market will improve after Saturday. 

The housing market has been a focus in the 2019 federal election with both Labor and Liberal making promises to help home owners and buyers.  

Prime Minister Scott Morrison announced a new scheme at the Liberal election campaign launch in Melbourne on Sunday that will mean a home buyer would only have to save for a five per cent deposit.

Labor was quick to steal his thunder, saying it will match the plan.

Mr Morrison said a similar scheme had been successfully running in New Zealand for a number of years.

Under the plan, the National Housing Finance and Investment Corporation – which Mr Morrison established when he was treasurer – would guarantee the difference between five per cent of the purchase price and the 20 per cent deposit.

‘This will make a big difference,’ Mr Morrison told the party faithful on Sunday.

‘Cutting the time taken to save for a deposit by at least half and more.’

Shadow treasurer Chris Bowen said Labor would match this commitment.

‘After six years of failure, and six days before an election, the Liberals are desperately trying to tell young Australians they understand their struggles to buy their first home,’ Mr Bowen said in a statement.

He said first home buyers knew the Liberals were out of touch and were only for the top end of town.

‘We back genuine support for first home buyers – that’s why we are also reforming negative gearing for future purchases, so young Australians don’t have to keeping losing out to wealthy property speculators,’ he said.

The Property Council said the deposit plan was a ‘smart proposal’ and will provide some confidence for the housing construction sector.