Australia’s property downturn is no longer just a Sydney and Melbourne story
Key takeaways
- Australian property prices fell 0.7% nationwide last month, the biggest monthly decline since late 2022.
- Prices fell across regional Australia and in previously booming cities like Brisbane and Adelaide.
- What's next: Rents are still on the rise, with low vacancy rates pushing rents upward.
The Australian property market is in a downturn that's now affecting most of the country, according to the latest Cotality Home Value Index.
Prices are down 0.7% nationwide, led by another month of big declines in Sydney (-1.4%), Melbourne (-1.2%) and Canberra (-1.0%). But they're not alone now.
Prices are also down in Adelaide (-0.2%) and Brisbane (-0.6%). Regional property fell 0.2%.
It's a sharp contrast to last month, when Sydney, Melbourne and Canberra were the only cities that saw monthly price drops. And regional property prices actually rose slightly.
July marks the largest monthly price drop in Cotality's Home Value Index since December 2022.
Perth and Hobart recorded slight price rises at 0.1% each, but are clearly slowing down and may fall further. Only Darwin saw significant price growth at 0.8%.
Prices falling harder at the top end of the market
According to Cotality, "the decline in home values remains heavily weighted toward higher-value properties."
The top 25% of the market has seen 3.2% price drops nationwide in the last three months. Prices in the lower end of the market have actually increased slightly by 0.3% over the same time.
Rents on the rise
Cotality's national rental index saw a 0.4% rise over the same time period, driven by a low vacancy rate.
Growth in rents was higher in cities where property prices are still rising. Darwin rents rose 10.4%, Perth rents rose 8.1% and Hobart rents rose 8.0%.
"There are question marks about how much further rents can rise," said Cotality head of research Gerard Burg. "The median rent has risen by over $200 per week in the last five years."
Sources
Ask a question