According to September figures from
CoreLogic, the median value of dwellings across the country declined slightly
over the month by 0.1%. National house values were flat at $571,395, and unit
values were down 0.3% to $513,584. Most of the downward movement can be
attributed to significant declines in Australia's two biggest cities, with 40%
of the nation's housing stock and 55% of its value firmly contained in the
Sydney and Melbourne markets.
According to Tim Lawless, CoreLogic’s Head
of Research, “By far the weakest result across the capital cities, Melbourne
housing values were down 0.9 per cent in September. Since peaking in March,
Melbourne values are down 5.5 per cent. With restrictions starting to lift and
private home inspections once again permitted, we expect to see activity lift
in October." Melbourne property prices have fallen by roughly 5% since
their latest recent peak in early April 2020, with opportunities increasingly
available to buyers based on the unique nature of the current downturn.
Darwin was the cheapest place to buy a home
in Australia based on September results, with the Top End capital recording a
median dwelling value of $398,885. Darwin also recorded the steepest upwards
movement in value, however, with the average median price rising by 1.6%.
Adelaide is the next most affordable capital at $444,321, followed by Perth at
$445,717, and Hobart at $489,059. The rest of the country had median values in
excess of half a million dollars, including Brisbane at $504,902, and Canberra
Melbourne recorded a median dwelling value
of $666,796 after declining by 0.9% over the month, and Sydney reached $859,943
after dropping 0.3%. Real estate activity has been virtually non-existent in
Melbourne over the last couple of months due to the stage-4 lockdown, with
growth expected to return by the end of the year. Although housing values were
generally positive over the month on a nationwide basis, the upwards trend of
the last few years has clearly weakened since mid-to-late March due to the
While the regional property market in
Australia shares some trends with the capitals, there are also many clear differences.
Since COVID-19 really started to hit around March, regional values have fallen
by 0.8% compared to -2.6% in the cities. Many regional markets have shown
remarkable resilience over the last few months, with the pandemic actually
increasing demand in some locations. Regional values didn't have as far to fall
in the first place, with prices also buoyed by a transition of demand away from
the cities, the normalisation of remote working arrangements, and an increased
demand for lower density lifestyle opportunities.