Invest
Falls in expensive home values bad news for entire market
Property price softening has largely bypassed cheap and middle-tier homes while denting the top end of the market, presaging a wider market downturn, new numbers suggest.
Falls in expensive home values bad news for entire market
Property price softening has largely bypassed cheap and middle-tier homes while denting the top end of the market, presaging a wider market downturn, new numbers suggest.
According to CoreLogic’s latest research, the most expensive end of the market saw values fall by 1.1 per cent in the March quarter and this could portent a wider downturn.
“Particularly within the housing markets which have recorded the strongest value growth over recent years (Sydney and Melbourne) that growth across the premium housing sector is slowing more rapidly than the other sectors,” research analyst at CoreLogic Cameron Kusher said.
“This mirrors the experience in other recent housing market slowdowns/downturns whereby it is the most expensive suburbs which slow first and have experienced the larger downturns.”
The cheapest 25 per cent of houses saw values increase by 0.7 per cent in the March quarter, in line with the annual 0.7 per cent growth.
At the same time, the middle 50 per cent of the market saw property values grow by 0.3 per cent, well below the 2.7 per cent average growth over the last year.
The top quarter of properties saw an annual value increase of 0.1 per cent, compared with the quarterly fall of 1.1 per cent.
“With value growth slowing, the trends of the past are being repeated with the most expensive properties experiencing the most rapid slowdown in value growth,” Mr Kusher said.
“During the growth phase, it was these same properties that were also recording the highest rate of capital gain.”
Sydney’s most expensive properties saw the largest value fall (-5.7 per cent) followed by a middle market softening of -0.9 per cent. Following the national trend, the cheapest properties saw moderate 0.6 per cent in the March quarter.
Regional NSW, on the other hand, saw growth among all three tiers, with the largest increase (5.6 per cent) experienced in the middle market.
The same trend occurred in regional Victoria.
However, Mr Kusher noted, “Hobart and regional Tasmania are seeing values grow at a rapid pace and it is interesting to note that the growth in the market is being led by more affordable properties with the relatively expensive housing lagging in terms of growth.
“In Perth and Darwin where the housing markets have been in a downturn for many years different trends are emerging.
“Perth is showing more signs of a recovery than Darwin and it appears the improvement in Perth is being driven by premium housing.”
In comparison, Darwin is exhibiting few signs of an improvement, Mr Kusher said, observing the 9 per cent fall in value among the most expensive properties, followed by an 8.2 per cent value fall in the middle tier and a 6.8 per cent drop in the cheapest property values.
RELATED ARTICLES
-
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
-
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
-
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
