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.
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.”