- Melbourne home prices fell by 0.5% in May, the largest decline of any Australian capital city.
- New data from CoreLogic shows the scale of declines has not been uniform in nature.
- Prices for homes have fallen more than units, led predominantly by inner-city regions.
Of all Australia’s capital cities, nowhere are prices falling faster than in Melbourne.
According to CoreLogic, the median price in Melbourne fell by 0.5% in May, leaving the decline over the past three months at 1.2%, larger than the 0.9% decline reported in Sydney.
As a result of recent price declines, annual growth in Australia’s second-largest city has slowed to 2.2%, well below the double digit percentage gains seen throughout much of 2017.
So where are prices falling the most in Melbourne?
Thanks to this chart from Cameron Kusher, Research Analyst at CoreLogic, posted on Twitter today, we now know the answer.
It’s been most acute in inner-city regions.
It shows price movements by location and property type from the recent cyclical peak late last year.
Like Sydney, prices for homes have generally fallen more than units over this period across all regions.
This suggests that tighter lending standards and ongoing affordability constraints are impacting the top end of Melbourne’s market more than those with lower valuations.
You can follow Cameron on Twitter here.