Ensure you never miss an issue of the
real estate business bulletin
National falls in value limited to most expensive market segment, latest report finds

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

Arrow down, values fall, expensive market segment
by Tim Neary 0 comments

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.”

National falls in value limited to most expensive market segment, latest report finds
lawyersweekly logo
promoted content
Recommended by Spike Native Network
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?