Dramatic House Price Drops In Sydney And Melbourne
The nation's property prices have dropped, but there's a surprising city bucking the trend.
As a whole, Australia has seen a 2.9 percent drop in house prices this year, with the average house costing $781,787.
The results, released by Domain, mean there are "opportunities" for buyers said Domain Senior Research Analyst, Dr Nicola Powell.
Darwin has seen the greatest drop in house prices in the nation, falling a staggering 12 percent in the last year.
"The lack of population growth has been a major drag on housing demand, housing finance activity and building starts," Powell said.
But it's Hobart that has seen the greatest price hike, with houses prices rising a staggering 19.3 percent.
Active buyers and limited supply have contributed to the higher prices in Hobart, but despite this, it still remains Australia's most affordable city.
"Hobart is still Australia’s most affordable city, although the house price gap between Adelaide and the Tasmanian capital has narrowed to a 12-year low," she said.
Houses prices in Sydney continue to fall, seeing a 6.5 percent drop in the last year.
“Sydney buyers and sellers are now operating in a housing market with prices at late-2016 levels," Powell said.
Melbourne has also seen a price drop, with house prices falling 3.2 percent over the year.
“Melbourne house prices have fallen the fastest of all capital cities over the quarter," Powell said.
“Houses at the middle to upper price points are feeling the brunt of the downturn, while an influx of first-home buyer activity has created sustained competition at the lower end."
Price drops in Sydney and Melbourne would come as no surprise to many, with the AMP predicting the housing market to fall by 20 percent by 2020.
On the east coast, Brisbane and Canberra joined Hobart in rising prices, seeing 2.2 percent and 4.0 percent rises respectively.
“Greater Brisbane house prices continued to rise on an annual basis, but the pace has slowed to half the growth recorded over the same period in 2017," Powell said.
Adelaide has also joined in on the price rise, seeing a 3.8 percent increase in house prices.
But despite showing early signs of improved conditions Perth's houses have fallen 2.2 percent in the last year.
Unit prices have also fallen around the country, with the average unit pricing at $549,163 -- a 1.4 percent drop from last year.
While Melbourne saw a loss in house prices, units in the Victorian capital have risen 1.5 percent in the past year.
Sydney units have also outperformed houses, but still saw a loss of 1.3 percent.
"Units have proved more resilient than houses," Powell said.
“Units in Sydney and Melbourne continued to outperform houses, while the trend is reversed in all other capital cities,"
It was Hobart again that saw the biggest rise in prices, with units seeing a 12.8 percent increase in prices.
Darwin suffered the greatest losses in unit prices as well, falling 11.4 percent in the past year.
Perth, Canberra and Brisbane all saw losses in unit prices, and Adelaide saw a marginal loss of just 0.2 percent.
A heightened supply of inner-city apartments are to blame for Brisbane's 6.8 percent drop said Powell.
"It is plausible that many off-the-plan sales have settlement valuations lower than the contract price, posing a settlement risk and possible discounts on resales,” she said.
- Sydney prices dropped 6.5 percent, median price $1,101,532
- Brisbane prices rose 2.2 percent, median price $567,376
- Melbourne prices dropped 3.2 percent, median price $852, 980
- Canberra prices rose four percent, median price $412,888
- Hobart prices rose 19.3 percent, median price $478,491
- Darwin prices dropped 12 percent, median price $519,260
- Adelaide prices rose 3.8 percent, median price $535,527
- Perth prices dropped 2.2 percent, median price $544,609
- Sydney prices dropped 1.3 percent, median price $734,774
- Melbourne prices rose 1.5 percent, median price $496,260
- Brisbane prices dropped 6.8 percent, median price $376,972
- Canberra prices dropped four percent, median price $412,888
- Hobart prices rose 12.8 percent, median price $352,111
- Darwin prices dropped 11.4 percent, median price $312,456
- Adelaide prices rose 3.8 percent, median price $316,163
- Perth prices dropped 2.2 percent, median price $347,089