Powered by MOMENTUM MEDIA
subscribe to our newsletter

Aussie home values drop by $22.5bn in March quarter

Housing market downturns in Sydney and Melbourne are continuing to drive down national home prices, with the latest data from the Australian Bureau of Statistics revealing a $22.5 billion drop in the value of Australia’s residential property market.

According to the Australian Bureau of Statistics’ (ABS) latest Residential Property Price Indexes, the total value of Australia’s 10 million residential dwellings declined by $22.5 billion to $6.9 trillion in the March quarter, with the mean price of national dwellings now sitting at $687,700.

Over the March quarter, property prices fell by 0.7 of a percentage point nationwide (2.0 per cent year-on-year), driven by price falls in the country’s largest cities, with Sydney’s values slipping by 1.2 per cent and Melbourne’s prices dropping by 0.6 of a percentage point.

“Sydney recorded the third consecutive quarter of falling property prices (1.2 per cent) and the first annual price fall (0.5 of a percentage point) since the March quarter 2012, while Melbourne property prices fell [by] 0.6 [of a percentage point], the first quarterly price fall since September quarter 2012,” ABS chief economist Bruce Hockman said.

Mr Hockman attributed the drop in home values to tighter credit conditions imposed by the Australian Prudential Regulation Authority (APRA).

Advertisement
Advertisement

“Regulatory changes and tighter lending conditions have continued to affect investors, who are more active in the Sydney and Melbourne property markets. These cities have seen strong price growth over recent years, particularly in detached dwellings,” the chief economist continued.

Home values also dropped in Darwin (1.1 per cent), Perth (0.9 of a percentage point) and Brisbane (0.6 of a percentage point).

Conversely, Hobart reported the largest spike in home values over the March quarter (4.3 per cent), with Canberra (0.9 of a percentage point) and Adelaide (0.5 of a percentage point) also reporting increases.

Mr Hockman attributed the continued uplift in Hobart’s home values to positive economic conditions in Tasmania.

“Positive economic conditions in Hobart, such as solid jobs growth, rising employment and an increase in net interstate migration, are underpinning demand for property,” the economist said.

PROMOTED CONTENT


“Hobart has continued to experience consistently tight housing supply, which is leading to a strong rise in residential property prices.”

[Related: Sluggish investor activity driving home loan slump]

Aussie home values drop by $22.5bn in March quarter
mortgagebusiness

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Lenders have begun offering disaster relief packages for customers impacted by Tropical Cyclone Seroja in Western Australia. ...

Boutique lender Apickle has launched new finance product for SMEs using eftpos that enable them to borrow up to $200,000 without an asset se...

The federal government said it is pleased that higher confidence levels have led to a strong housing market but said that it is “keeping a...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.