High-end homes lead Sydney and Melbourne housing market downturn
Australia’s most expensive homes are leading the latest housing downturn, with high-end properties in Sydney and Melbourne falling more than 10 per cent from their peak values.
Cotality data shows homes in the top 25 per cent of the market are now 10.7 per cent below their peak in Sydney and 10.5 per cent lower in Melbourne. The median value of these properties is about $2.1 million in Sydney and $1.2 million in Melbourne.
Lower-priced homes and units have generally held up better, supported by stronger affordability.
Cotality head of research Gerard Burg said the downturn is also spreading to Brisbane, Adelaide and Perth after initially hitting Sydney, Melbourne and Canberra.
National home sales fell 2.7 per cent in the year to August, while capital-city sales dropped 5.2 per cent. Regional sales, however, increased 1.8 per cent.
Experts say higher-end buyers have more flexibility to delay purchases or negotiate prices. Investors are also believed to be taking a more cautious approach while waiting for greater certainty around the market and proposed tax changes.
Open-home attendance also points to a slowdown in demand. Ray White chief economist Nerida Conisbee said attendance fell by about half between January and July before beginning to stabilise.
Units have remained more resilient than detached houses in most markets because of their lower entry prices. However, there are regional differences.
In Canberra, lower-priced units have fallen 2.9 per cent from their peak, compared with a 1.6 per cent decline among higher-value units.
The latest figures suggest the housing correction is becoming broader, while affordability continues to influence which parts of the market are proving most resilient.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
Source : ABC News
Comments