Yahoo Finance Surprising capital cities where property prices have dropped
Australian property values increased 0.6 per cent in November, but some capital cities experienced a drop.
There could be some good news for those hoping to get into the housing market, with Australian property prices now starting to slow after hitting a record high.
CoreLogic’s Latest Home Value Index (HVI) rose 0.6 per cent in November, the smallest monthly increase since the property growth cycle started in February.
The median value of a home in Australia has now risen to $753,654. In Sydney, the median value rose to $1,125,533. In Brisbane, it increased to $779,270. But, in Melbourne, it actually dipped to $779,914.
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Which cities have dropped and which have risen?
Melbourne was one of three capital cities that recorded a decline in values over the month. Melbourne and Hobart prices were both down 0.1 per cent, while Darwin was down 0.3 per cent.
While Sydney values increased, the good news is growth slowed sharply to 0.3 per cent in the month - the smallest increase this recovery cycle.
Sydney home values actually went backwards over the last week of the month and CoreLogic said we could see Sydney following Melbourne’s lead, with home values stabilising or dipping in December.
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On the other end of the scale, Perth posted its largest monthly gain since March 2021 (up 1.9 per cent), Brisbane (up 1.3 per cent) and Adelaide (1.2 per cent) also had resilient and rapid growth.
Regional housing values are lagging behind, up just 4.3 per cent since January, compared to capital city values, which are up 9.6 per cent. Regional prices are still 1.8 per cent below the high recorded in May 2022.
Why is this happening?
CoreLogic research director Tim Lawless said the slower growth conditions in Sydney and Melbourne were more noticeable in more expensive areas, which tended to lead the cycles.
“The Melbourne Cup Day rate hike has clearly taken some heat out of the market. But other factors, like rising advertised stock levels, worsening affordability and persistently low consumer sentiment, are also acting as a drag on value growth in some markets,” Lawless said.
Meanwhile, an imbalance in supply and demand is “keeping strong upwards pressure” on the Brisbane, Adelaide and Perth markets.
Looking ahead, CoreLogic expects housing value performance will be softer in 2024 and more diverse from region to region and across different housing types. WA and Queensland are expected to outperform the rest of the country, while units are forecast to outperform houses.
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