National dwelling values dropped 0.7% in November, the biggest month-on-month fall since the Global Financial Crisis, according to CoreLogic’s latest report. This latest drop means Australian property prices are down 4.2% since last year’s October peak, which brings prices close to those last seen in December 2016.
Sydney (-1.4% in November) and Melbourne (-1.0% in November) continue to drive the nationwide housing downturn, with the decrease accelerating in the two capital cities over the past month.
However, not all capital cities are seeing a decline in dwelling values, the report shows prices of homes in five of the eight capital cities are on the rise. Corelogic’s head of research, Tim Lawless said, “Conditions across the Australian housing market are increasingly diverse. Dwelling values are trending higher across five of the eight capital cities, albeit at a relatively slow pace compared with the previous surge in Sydney and Melbourne.”
Change in dwelling values for capital cities as of November 2018:
What’s happening in the regional market?
Prices of properties in regional areas were down 0.1% in November, but were still up 0.3% since November last year. Over the past year two regions in Tasmania (Launceston and North East, and the South East) recorded double digit growth.
According to the report, strong growth in top performing regional markets is wearing on the affordability advantages of these markets, although lifestyle is still a strong driver behind the demand.