- Australian home prices fell 0.4% in May, according to CoreLogic’s latest Home Value Index, leaving values down 7.3% over the past year in average weighted terms.
- However, the declines in some Australian regions have been significantly larger than the national average. In others, prices haven’t fallen at all.
- All of the worst-performing capital city markets saw median prices fall by more than 10% on average over the past year. Outback Queensland recorded the largest price decline of any region at 30.7%.
Australian home prices fell 0.4% in May, according to CoreLogic’s latest Home Value Index, leaving values down 7.3% over the past year in average weighted terms.
However, the declines in some Australian regions have been significantly larger than the national average. In others, prices haven’t fallen at all.
These two charts from CoreLogic underline the point that there’s no such thing as an “Australian” housing market.
The first shows the SA4 capital city regions where median home prices have fallen and risen over the past year.
For clarity purposes, there are 107 SA4 regions located across the country. Generally, most contain more than 100,000 people, especially in metropolitan areas where they often have populations of between 300,000 to 500,000.
In the year to May, only five SA4 capital city regions saw median home prices increase, led by Hobart, the Tasmanian capital, at 3.5%. The ACT also saw home prices lift by 2.4% on average over the year with smaller gains also seen in various locations in and around Adelaide, South Australia’s capital.
Five of Australia’s “top-performing” capital city regions saw prices actually decline over the year, demonstrating just how weak market conditions have been across large parts of the country of late.
In terms of the capital city regions that have seen the largest declines over the past year, Ryde, in north-west Sydney, recorded the steepest decline in median prices at 16%, outpacing falls in other parts of the city over this period.
The remaining bottom-performers were located in Melbourne, along with Mandurah in Perth’s south.
Reflecting that regional markets have, on average, fared better than the capitals over the past 12 months, all 10 of the top-performing regional markets saw median prices lift over the year, dominated by parts of Tasmania, Victoria and New South Wales.
At the other end of the spectrum, CoreLogic said the regional areas with the largest price falls over the past 12 months were “confined to the broader outback areas of Queensland and Western Australia, as well as the wheat belt of Western Australia where weaker agricultural conditions are likely having a negative impact on housing values”.
Of note, median prices in outback Queensland slumped by over 30% over the year, reflecting the impact of the East Coast drought. This region also has the highest unemployment rate in Australia.
CoreLogic also noted that “regions adjacent to Sydney, including Illawarra, Newcastle and Lake Macquarie, and the Southern Highlands and Shoalhaven, have also recorded substantial falls in value over the past twelve months, following a similar downwards trajectory to the Sydney market”.
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