Property prices in Sydney continue to feel the effects of the downturn, with new data showing values have now declined 10.1 per cent from their peak, according to CoreLogic.
The double-digit decline follows six successive cash rate hikes and record-low affordability after prices surged 27.9 per cent or $252,900 during the COVID-trough to peak boom.
CoreLogic Research Director Tim Lawless said it was unsurprising Sydney was leading the capitals in the current downturn given it is the country’s most expensive capital city housing market and arguably has the greatest susceptibility to rising interest rates.
“Although Sydney’s housing values were already in decline when the rate hiking cycle began, the pace of decline accelerated sharply following the first interest rate increase in May,” Mr Lawless said.
“Sydney values are now down 9.5 per cent since 3 May, and 10.1 per cent since peaking on 13 February this year.”
According to CoreLogic’s monthly Home Value Index, Melbourne property prices are also showing sharp falls, with values down 6.4 per cent since January, and Brisbane is also down 6.1 per cent since peaking in June.
Adelaide and Perth have both declined less than 1 per cent since their August peaks, while Hobart and Canberra are down 4.7 per cent and 4.4 per cent respectively since their month-end peaks.
Darwin remains the only capital city where housing values haven’t started to trend lower, although property prices are still 10.1 per cent below their record high levels of 2014.
“Despite the 10.1 per cent decline so far, Sydney home values still have a way to go before wiping out the capital gains accrued over the recent growth cycle,” Mr Lawless said.
“Home values would need to fall a further 11.4 per cent to get back to the levels seen at the onset of COVID.
“The good news for Sydney homeowners is that the rate of decline has continued to moderate through October, improving from a 2.2 per cent decline over the four-week period ending 3 September to 1.3 per cent over the most recent four-week period ending 23 October.”
