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Property prices still up $218,000 despite downturn

A composite image of property in Sydney and Australian currency.
Aussie property prices may be falling but they are still significantly higher than pre-pandemic. (Source: Getty)

Australia’s 2022 property market will be defined by a once-in-a-generation property boom that transitioned into a downturn, Domain’s End Of Year Wrap found.

The Domain report found that, after extraordinary price growth in 2021, this year’s property market stood in stark contrast, with house prices across the combined capital cities switching to their fastest quarterly decline on record.

The report said the property market rapidly shifted to provide buyers greater negotiation power as supply rose and prices softened.

But, at the same time, affordability became an issue due to consecutive rate hikes and the rising cost of living.

In 2022, house prices across the combined capitals fell 4.9 per cent from the March 2022 price peak, down about $53,000. However, this price cycle remained 27 per cent higher (about $218,000) than the mid-2020 trough.

Domain chief of research and economics Nicola Powell said the past two years had been fascinating to watch.

“After soaring price growth in 2021, it was inevitable that we would see an adjustment phase of the property cycle in 2022,” Powell said.

“This is a reminder that homeowners or prospective buyers need to maintain an overall perspective. History tells us that, in the last 30 years, the duration and steepness of an upswing are longer and greater than a downturn, supporting the idea that it’s not timing the market, it’s the time spent in the market that counts.”

Have property prices really fallen?

In short, no not really. Despite the downturn in the market, property prices are still well above pre-COVID levels.

Here’s a breakdown of the capital cities:

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