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Aussie property prices to drop another $60,000 by the end of the year

Samantha Menzies
Senior editor – Finance
Property prices to plunge again. Source: Getty Images

Australian property prices have suffered a pummelling over the past 12 months, with prices dropping at a fast rate than during the global financial crisis around the country.

And it’s not hit rock bottom yet.

In fact, experts believe that property prices could fall another 8 per cent by the end of 2019, with units in Sydney and Melbourne expected to be worst hit, according to a recent RBA cash rate survey by Finder.

The median for house price for Sydney is $930,000, but with a forecasted 6.21 per cent decline prices could plummet nearly $60k to a new median of $872,242.

Melbourne house prices are tipped to fall by almost $50,000 by 2020. 

Expected price changes for houses and units around the country

It’s good news for first-home buyers

Even lower prices means could be just what some first-time buyers need to get on the property ladder, Finder’s insights manager Graham Cooke said.

With another 6-8 per cent drop expected for Sydney this year, it would be harder for existing homeowners to build up equity, however it also makes Sydney an attractive market for first-home buyers with a deposit saved, he explained.

So Cooke said that those thinking of getting into the property market over the next few years may be wise to hold out until prices have dropped further. 

“Right now, there’s no need to jump on the first property you like. Use this time to save for your upfront costs,” he said.

“Look for value before you plunk down your deposit. Buying at the right time could potentially save you tens of thousands.”

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