The numbers are in. While the Australian property market is generally considered slowing, it’s actually an incredibly mixed bag.
The suburb with the highest median value is Bellevue Hill in Woollahra, NSW where the median value is an eye-watering $4,670239, the latest report from CoreLogic reveals.
Then there’s the suburb with the lowest median value, Zeehan, in the West Coast of Tasmania. Here you can pick up a property for just $71,184.
Emerald in Queensland has seen the largest 12 month change in median values, up 37.4 per cent, while Exeter in NSW is the suburb that keeps on giving. Its median value has ballooned a staggering 150.6 per cent in the last five years to November.
Newman in the East Pilbara region of Western Australia is the suburb with the highest gross rental yields, raking in 14.9 per cent.
But if you’re renting, your best bet is Queenstown in Tasmania. Here the median weekly advertised rent is just $143.
For those with a bit more cash, Bellevue Hill in NSW is a scenic area with a scenic rental rate: the median weekly advertised rent is a whopping $2,500.
Here’s that in a chart:
Let’s break that down by state
Sydney’s top performing suburbs of 2018
Melbourne top performing suburbs of 2018
Brisbane top performing suburbs of 2018
Adelaide top performing suburbs of 2018
Perth top performing suburbs of 2018
Hobart top performing suburbs of 2018
Darwin top performing suburbs of 2018
Canberra top performing suburbs of 2018
What’s happening to the market?
National dwelling values have slid 4.1 per cent this year, marking the largest annual fall since 2011.
And the rate of decline has been quickening, especially in the east-coast cities of Melbourne and Sydney, which saw value falls of 8.1 per cent and 5.8 per cent respectively.
However, this housing slowdown is unlike any other, said CoreLogic research analyst Cameron Kusher.
Former slowdowns have been fueled by economic softening or higher mortgage rates.
But this slowdown has been triggered by tighter credit conditions.
“Since the onset of financial deregulation in the mid-1980s, credit access at the time became a whole lot easier for borrowers,” Kusher said.
“However, since macroprudential policies implementation began in 2015, accessing credit has become incrementally more difficult and where investors and interest-only borrowers are having to pay higher mortgage rates.”
The prudential regulator, APRA, scrapped its measures designed to curb interest-only lending yesterday, but according to Kusher, credit conditions will remain tight into the new year.
And this, he added, will likely trigger further housing market softening.
“February will see the release of the Banking Royal Commission findings and recommendations and will potentially deliver significant changes for the mortgage landscape,” he continued.
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