The latest CoreLogic report shows the value of Australian homes are continuing to fall.
National dwelling values fell a further 0.5% over September, marking the twelfth consecutive month of downturn and a total drop of 2.7% since last year’s September peak.
The value of homes in half of Australia’s capital cities have tracked lower over the past twelve months. While Brisbane, Adelaide, Hobart and Canberra – along with combined regional markets – have recorded a slowdown in their annual pace of growth.
“While the housing market downturn is well entrenched across Darwin and Perth where dwelling values remain 22.1% and 13.2% lower relative to their 2014 peak, Sydney and Melbourne are now the primary drag on the national housing market performance,” says Tim Lawless, CoreLogic’s Head of Research.
“We’ve seen Sydney dwelling values drop 6.1% over the past twelve months and Melbourne values are 3.4% lower. Not only are these amongst the largest annual falls across the capital cities, but considering Sydney and Melbourne comprise approximately 60% of the national value of housing, the weak conditions in these cities have a substantial drag down effect on the overall national housing market performance.”
Highlights for July to September 2018 quarter
According to the report, highlights for the three month period are:
- Canberra is the best performing capital city with a rise of 1.0% in dwelling values
- Melbourne the weakest performing capital city with a 2.4% drop in dwelling values
- Darwin has the highest rental yield at 5.6%
- Melbourne has the lowest rental yield at -3.1%