Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

More expensive homes take brunt of housing slide

expensive homes, property, values in Sydney

The slowdown in property price-growth is impacting houses on the higher end of the spectrum, as those worth $400,000 or less remain untouched, new numbers reveal.

According to the latest numbers from property research group CoreLogic, national dwelling values continue to fall but cheaper homes are, so far, untouched.

“With values now falling in Sydney and Melbourne, it is unlikely to initially result in an increase in sales under $400,000. However, should it continue for a number of years we may finally see a reversal of the declining trend in sales under $400,000,” CoreLogic research analyst Cameron Kusher said.

Dwelling value growth slowed over the 2017-18 financial year to -0.8 per cent, following an increase of 10.2 per cent over the previous year.

Advertisement
Advertisement

However, the number of properties sold for less than $400,000 continues to fall as value growth on the lower end of the spectrum continues, falling from 30.7 per cent of all houses to 29.2 per cent, and from 35.4 per cent of unist to 34.6 per cent.

At the same time, the number of million-dollar sales is beginning to slide. 

“As housing market conditions continue to weaken, it is anticipated that there will continue to be fewer sales above the $1 million threshold,” Mr Kusher said.

“This will largely be driven by weakening in Sydney and Melbourne. Smaller capital cities are also likely to continue to see the share of $1 million sales climb further too.”

The 12 months to June 2018 saw 16.0 per cent of all houses and 8.8 per cent of units sell for at least $1 million, down from 16.1 per cent of houses in the previous year and 9.1 per cent of units.

More expensive homes take brunt of housing slide
expensive homes, property, values in Sydney
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Michael Jenkins - Don't the ATO need and AFSL licence to do that. Also will the ATO performing a fact find and producing a statement of advice to those funds it it.......
Blair Campbell - HHG - I had a brief discussion with someone on Facebook recently.
They insisted that payment of income tax by individuals was 'voluntary'.
I told him that.......
Paul Cunningham - You mean "as the Sydney and Melbourne property markets charge towards their longest price correction" ....
Anonymous - Where does Core Logic get its information? In the early 1990's there was a 2-3 year price correction of up to 50% in Melbourne and Sydney in the.......