realestatebusiness logo
Subscribe to our newsletter SIGN UP

National falls in value limited to most expensive market segment, latest report finds

Dwelling values around the country were down by 0.5 per cent over the March 2018 quarter, according to the latest CoreLogic report. But the fall was confined to the most expensive segment of the market only, while the middle and most affordable segments both increased in value.

Arrow down, values fall, expensive market segment
April 15, 2018 Tim Neary 0 comments

In the period, dwelling values within the least expensive quartile increased by 0.7 per cent, middle values were 0.3 per cent higher and the top 25 per cent values were 1.1 per cent lower, according to the CoreLogic Property Pulse released last week.

Research analyst Cameron Kusher said that there is a pattern emerging.

“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.”

Mr Kusher also said that the data highlights that, particularly within the strongest performing housing markets like Sydney and Melbourne, growth is slower more across the premium sector than in the others.

“This mirrors the experience in other recent housing market dips whereby it is the most expensive suburbs which slow first and have experienced the larger downturns.”

On the other side of the coin, the Property Pulse found that Hobart and regional Tasmania are seeing values grow at a rapid pace.

“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,” Mr Kusher said.

He said that 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. By comparison, in Darwin where the market shows few signs of improvement, the most expensive properties are showing the greatest weakness.”

Mr Kusher added that the headline figures tell a broad story but also highlights the importance of taking a more micro look at the market.

“The data shows that, even within cities, there are very different trends at play between the affordable and expensive properties, which is important to understand.”

National falls in value limited to most expensive market segment, latest report finds
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
reb top 50 women 2018

The 2018 REB Top 50 Women in Real Estate ranking is out now, see the full 2018 ranking here!

featured podcast

featured podcast
Million-dollar agent tells why there is no substitute for honesty, empathy and honourability

Placing at number 29 in the REB Top 50 Women ranking for 2018, Anna Younan has demonstrated that persistence and a consistent work ethic do...

View all podcasts

What is the most important attribute to have in real estate sales?

Patience
Honesty
Competitiveness
Empathy
Old fashioned grunt
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.