a7dff97a-331a-45ee-8593-13a0f9d431c1

Sydney Home to Nine of the Top 10 Worst Performing Regions


Sydney suburbs made up nine of the ten regions nationwide that experienced declining house values in the last financial year, with the city's prices falling 4.5 per cent over the year to June.

Despite the largest falls being confined to Sydney over the 2017-18 financial year, it was Melbourne that led the monthly declines, with dwelling values down 1.4 per cent in the Victorian capital.

Sydney followed with a 0.9 per cent decline, followed by Darwin (-0.8%) and Perth (-0.7%); regional markets offset the capital city decline with a 0.6 per cent rise.

In its June Home Value Index released on Monday, Corelogic was quick to point to the flow on effects of tighter lending conditions as the “primary drivers” of weaker housing conditions.

“We don’t see either of these factors relaxing over the second half of 2018, despite APRA’s 10 per cent investment speed limit being lifted this month,” Corelogic research director Tim Lawless said.

Sydney’s worst performers include the inner west which fell 7.2 per cent, Baulkham Hills and Hornsby, which dropped 7.1 per cent and Ryde – which recently had all residential development applications suspended by its council – falling 7.4 per cent.

Sydney has been hit the hardest, with nine of the top 10 worst-performing regions for house values over the financial year.
Sydney has been hit the hardest, with nine of the top 10 worst-performing regions for house values over the financial year.


Expensive properties hit hardest

The declines are more pronounced across expensive properties with the most expensive quartile of capital city properties down 1.5 per cent over the past three months as the least expensive quartile remained stable.

The most expensive housing markets in the country, Melbourne and Sydney, led the fall with property values decline 2.5 per cent and 7.3 per cent respectively over the past 12 months.

“A surge in first home buyer activity has helped support demand across the more affordable price points in these cities,” Lawless said.

Related: Stamp Duty Revenue Has Doubled Over the Past 8 Years

Alongside Sydney, both Perth and Darwin saw median values fall over the year, at 2.1% and 7.7% respectively.
Alongside Sydney, both Perth and Darwin saw median values fall over the year, at 2.1% and 7.7% respectively.


Unsurprisingly, Hobart is the best performer among capital cities, making a 12.7 per cent jump over the year to a median value of $436,899.

Brisbane, Melbourne and the ACT rounded out the nation’s strongest performing markets.

Despite consistent month-on-month falls, Corelogic figures reveal that national dwelling values remain 32.4 per cent higher than five years ago.

“This highlights the wealth creation that many home owners have experienced over the recent growth phase, but also the fact that recent home buyers could be facing negative equity.”

ADVERTISEMENT
TOP STORIES
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://theurbandeveloper.com/articles/sydney-home-to-nine-of-the-top-10-worst-performing-regions-