Aussies living in Tasmania have seen the strongest growth in property values in Australia, with two regions reporting growth of more than 9 per cent last year.
But conversely, Australians living in inner east Melbourne have less to celebrate. Their property values slumped an incredible 15.0 per cent, the latest CoreLogic home value index has revealed.
Across the country, home values fell 1.0 per cent over January, bringing the cumulative decline to 6.1 per cent since the market peaked in October 2017.
In fact, property values have fallen in 13 of the past 15 months across Australia.
“The January index results, as well as peripheral housing data are likely to foreshadow a challenging year for the housing market,” CoreLogic research analyst Tim Lawless commented this morning.
AMP chief economist Shane Oliver also observed today that Australia is now experiencing a housing decline worse than that seen during the 2007-08 global financial crisis.
It’s a grim picture overall, but many regions in Tasmania and South Australia are defying the trend.
The good news
While large swathes of Sydney saw property value falls of up to 13.4 per cent, Hobart residents have enjoyed an annual change in their home value of 7.4 per cent.
They’re followed by homes in the Australian Capital Territory where property values increased by 3.8 per cent and west Brisbane, where values increased by 2.4 per cent.
The relatively modest gains are indicative of the overall weakness of the Australian property market, Lawless noted.“The low rate of annual capital gain amongst the top performing sub-regions highlights that even the areas with the strongest capital gains are predominantly recording growth lower
Outside of the capital cities, several markets saw much stronger growth.
Launceston and north east Tasmania saw an annual change in dwelling values of 9.9 per cent, followed by south east Tasmania, where values surged 9.2 per cent.
A buyers’ market
These regions are largely the exception to Australia’s housing landscape.
And the lower prices and increased supply of homes is transforming Australia into a buyers market, Lawless noted.
“Buyers are now in a position where they can negotiate harder, take their time in making a purchase decision and be selective in finding a home that is right for their budget and lifestyle.”
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