Syd­ney prices set for worst-ever de­cline

Benalla Ensign - - Communityvoice -

Syd­ney house prices have eroded nearly 10 per cent in a year and are on track for their worst 12 months on record as the na­tional prop­erty mar­ket slumps to its weak­est since the global fi­nan­cial cri­sis a decade ago.

While val­ues across Tasmania surged by their most for a year, the main­land price slide con­tin­ued apace.

CoreLogic data re­leased Mon­day showed na­tional dwelling val­ues fell by an­other 0.7 per cent for Novem­ber, weighed down again by the na­tion’s two big­gest mar­kets.

Syd­ney’s drop was dou­ble the na­tional av­er­age, and Mel­bourne val­ues fell 1.0 per cent.

Since peak­ing in July last year, Syd­ney’s hous­ing mar­ket has dropped 9.5 per cent and is on track to eclipse the pre­vi­ous peak-to-trough de­cline set dur­ing the last re­ces­sion.

Syd­ney val­ues fell 9.6 per cent be­tween 1989 and 1991.

Mel­bourne dwelling val­ues peaked four months later than Syd­ney, in Novem­ber last year, and have since fallen by 5.8 per cent through to the end of Novem­ber this year.

Corelogic head of re­search Tim Law­less said tighter fi­nance was more pro­nounced across the in­vestor seg­ment of the mar­ket, with Syd­ney and Mel­bourne record­ing much higher con­cen­tra­tions of in­vestor de­mand in re­cent years.

‘‘The ramp up in hous­ing sup­ply has been more pro­nounced in these mar­kets against a back­drop of slow­ing de­mand, and Syd­ney and Mel­bourne have also been more af­fected by the re­duc­tion in for­eign buy­ing ac­tiv­ity,’’ Mr Law­less said.

Ho­bart dwelling val­ues are up by 9.3 per cent for the the past 12 months — by far the strong­est con­di­tions across any of the cap­i­tal cities — while Launceston and Tas- ma­nia’s north east rose 12.1 per cent, the south-east re­gion jumped 11.2 per cent, and Burnie and the north west climbed 9.1 per cent.

‘‘Strong growth in these ar­eas is start­ing to erode the af­ford­abil­ity ad­van­tages of these mar­kets, although life­style fac­tors are also a strong driver of de­mand in many of these lo­ca­tions,’’ Mr Law­less said.

Can­berra prop­erty val­ues are up 4.1 per cent dur­ing the past 12 months, while the western suburbs in Bris­bane have risen 3.5 per cent, and Ade­laide’s west rose 3.4 per cent.

Gee­long house val­ues were up 9.6 per cent for the year.

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