The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
30
print
Print
ResidentialMon 03 Jun 19

Sydney and Melbourne Slow Rate of Decline in May

77c9e207-2b93-460a-8896-599f0d73a192

The pace of housing declines eased in May, with national dwelling values recording a 0.4 per cent decline, the smallest month-on-month drop in the past 12 months.

While dwelling values are still trending lower, Corelogic’s home value index shows the improvement is being driven by a slower rate of decline in major markets Sydney and Melbourne.

Sydney’s residential values recorded 0.5 per cent declines for the month while Melbourne values dropped 0.3 per cent. Corelogic head of research Tim Lawless says this is the smallest decline in values for both cities since March last year.


▲Since peaking, larger capital city falls have been recorded in Darwin -29.5 per cent, Perth -19.2 per cent, as well as regional WA -32.5 per cent, where the mining downturn continues to be felt. Image: CoreLogic.

Taking in the latest housing data, macroeconomic research group Capital Economics said it expects Australia's housing price declines to reach a trough by the end of this year.

“We suspect house prices may start to rise again thereafter, by 3 per cent in 2020 and 5 per cent in 2021,” the research consultancy group said.

Although Capital Economics added that it expects the housing downturn to remain a drag on the economy throughout this year and into 2020.

While most analysts are predicting a June rate cut, Lawless says a “variety of headwinds” are still at play in the property sector.

“Especially in the credit space,” he said.

“Although interest rates and serviceability tests are set to reduce, lenders are continuing to scrutinise incomes and expenses much more intensely.”

Related: The Four Potential Scenarios For Housing Markets: UBS

▲Canberra was the best performing capital city for the three months to May up 0.2 per cent. While Darwin was the worst performing capital city market down 3.3 per cent for the same period. Image: CoreLogic

Lawless says the slower rate of decline is also noticeable in higher auction clearance rates recorded through the month.

The last week of May recorded clearance rates breaking 60 per cent for the first time in a year in Sydney, while Melbourne clearance rates have maintained around the 60 per cent mark over three of the past six weeks.

“Although clearance rates remain low relative to several years ago when housing market conditions were much stronger, the improved performance at auction aligns with the easing rate of decline,” Lawless said.

National dwelling values have recorded declines of 8.2 per cent since peaking in 2017.

Adelaide was the only city not to record a drop in dwelling values in May, rising 0.2 per cent.

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useReal EstateSector
ADVERTISEMENT
TOP STORIES
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
5 Min
Exclusive

Gold Coast’s Greatest Moments Yet to Come: Evan Raptis

Phil Bartsch
7 Min
MODEL founder Rory Hunter HERO
Exclusive

‘It’s Massive’: On Mission to Prove BtR Green Equals Gold

Leon Della Bosca
8 Min
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
View All >
Paradiso Place Surfers Paradise hero
Residential

Surfers Paradise $1bn Triple-Tower Project Feasibility Juggle

Phil Bartsch
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
Office

Centennial Seals $50.5m Deal for Adelaide Tower

Lindsay Saunders
The deal for 63 Pirie Street broke two records, including one of the property investment manager and developer’s own...
LATEST
Paradiso Place Surfers Paradise hero
Residential

Surfers Paradise $1bn Triple-Tower Project Feasibility Juggle

Phil Bartsch
4 Min
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
3 Min
Office

Centennial Seals $50.5m Deal for Adelaide Tower

Lindsay Saunders
3 Min
Kemps Creek Penrith EDM
Industrial

Frasers $281m Penrith Warehouse Precinct Greenlit

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/sydney-and-melbourne-show-slower-rate-of-decline-in-may