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Latest data shows that Australia’s premium housing market has softened more than its affordable segment.
The CoreLogic Decile Report provides an analysis of different levels of Australia’s property market, broken up into 10 groups/deciles based on tiers of property value.
The 10th decile, or the premium properties, were those properties worth over $1.2 million and that had e a value of $256,786 or less, according to CoreLogic.
The trend found by the report was that the 10th decile had fallen, while all other deciles had enjoyed limited growth throughout the past 12 months.
National dwelling values had grown by 0.2 per cent over the year, the slowest annual rate of growth since values fell by -0.3 per cent in October 2012.
CoreLogic found that only the most expensive 10 per cent of properties had recorded a 4.3 per cent fall in value and all other sectors recorded growth greater than 0.2 per cent.
CoreLogic research analyst Cameron Kusher said that the most expensive declines had all lowered.
“The softening premium property market trend became even more evident when we assess it from a quarterly basis, with values trending lower across the three most expensive property deciles,” the analyst said.
Mr Kusher said that, by contrast, the affordable ranges had shown subtle increases, particularly the most affordable properties.
“The more affordable decile ranges remained in subtle growth over the past three months, and it was the most affordable 10 per cent of properties that recorded the greatest quarterly value increase, up [by] 1.6 per cent,” Mr Kusher said.
The research analyst said that while the trends are mostly consistent, there are some variants on a market-by-market basis.
“The more affordable end of the market is strongest across Sydney, Melbourne and Brisbane, whereas Perth is showing the strongest performance at the premium end of the property market,” Mr Kusher said.
However, across the markets, strong market conditions persist, which clearly reflected the expense of city markets.
“The trends across each decile suggest that stronger housing market conditions are persisting across the most affordable end of the valuation spectrum, potentially supported by a surge in first home buyer activity,” Mr Kusher said.
“The countrywide trends will also reflect the fact that the more expensive properties are located in the capital cities, or more specifically Sydney and, to a lesser extent, Melbourne.”
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