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Melbourne property prices falling at slower rate

CoreLogic Home Value Index June

Property prices continue to fall in Sydney and Melbourne but at a declining pace, CoreLogic says.

House and apartment prices in most of the Australian capital cities are continuing to trend downwards but at a slower pace, according to the latest figures from CoreLogic.

National dwelling values across the combined capitals fell by 0.4% over May, the smallest month-on-month drop in a year. CoreLogic head of research, Tim Lawless, attributed this improvement to "a slower rate of decline in Sydney and Melbourne where housing values were previously falling at the fastest rate of any capital city.

"Sydney values were 0.5% lower over the month while Melbourne values were 0.3% lower; the smallest decline in values across both cities since March last year," he said.  

Adelaide was the only capital to post any value gains in May, while Darwin and Perth saw the biggest falls monthly falls of 1.6% and 1% respectively. 

Capital city Month Quarter Annual
Sydney -0.5% -2% -10.7%
Melbourne -0.3% -1.7% -9.9%
Brisbane -0.5% -1.4% -2.3%
Adelaide 0.2% -0.2% 0.4%
Perth -1% -1.8% -8.8%
Hobart -0.4% -0.7% 3.4%
Darwin -1.6% -3.3% -8.6%
Canberra -0.2% 0.2% 2.4%
Combined capitals -0.4% -1.7% -8.4%

Momentum is also slowing noticeably in Hobart, which saw the strongest value growth of all capitals over 2018. This year, however, prices there have fallen by 0.7% over the three months to May.

Canberra has been the only capital to post any dwelling value growth since 1 January, albeit just 0.2%.

With dwelling price falls moderating, CommBank Senior Economist Belinda Allen predicted that "house prices [would] stabilise in the second half of 2019". 

The ongoing price downturn across most capitals comes as the Reserve Bank of Australia is widely tipped to cut the cash rate by 25 basis points to a new record low of 1.25% when its board meets tomorrow.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Past performance is no guarantee of future performance. The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. The CBA Group does not accept any liability for losses or damage arising from any reliance on external companies and their products, services and material.