Sydney house prices fall
The surging Sydney property market has finally come to a halt, according to the latest figures.
The CoreLogic Hedonic Home Value Index shows that median dwelling prices in Sydney fell by 0.1% in September. The result is the city’s first month-on-month decline since April 2016. Sydney’s quarterly performance was also weak, with prices up just 0.2%, the ABC reported.
The Melbourne and Hobart markets have remained resilient. Melbourne home values were up 0.9% in September, while Hobart prices rose by 1.7%.
The result puts Hobart at the head of the pack for annual price gains, at 14.3% so far this year. Melbourne prices are up 12.1% for the year to the end of September, while Sydney values are up 10.5%.
CoreLogic research head Tim Lawless said that Sydney’s performance has likely been impacted by the city’s higher proportion of investors relative to other capitals. Regulatory restrictions have taken many investors out of the market, Lawless says, and this has impacted Sydney more than other markets.
“We are still seeing that more than half of the mortgage demand in Sydney is investment-based, whereas in every other state we are seeing that investors make up less than half of the mortgage demand," Lawless said.