You may not recall much from 1989–91. But if you were a home owner in Sydney, you likely lost sleep during those years as you watched your home’s value plummet.
Now Sydney is on track to beat that ruinous record.
The national property market dropping to its lowest in a decade since the global financial crisis is pushing Sydney house prices towards their worst year on record, having disintegrated nearly 10%.
Whilst value across Tasmania climbed their most for a year, their mainland value slide continues.
Data from CoreLogic released yesterday showed that national residence values have fallen by another 0.7% for November, which has been burdened again by the nation’s two biggest markets.
Melbourne’s values have fallen 1.0% with Sydney’s drop doubling the national average.
Sydney’s housing market has dropped 9.5% since peaking last year in July and is now on its way to exceeding the previous decline from the last recession.
From 1989–91, Sydney’s values fell 9.6%.
Sydney and Melbourne have more housing supply
AAP reports that Melbourne’s resident values increased four months after Sydney last year in November, and since then have dropped 5.8% to the end of November 2018.
Tim Lawless, Corelogic’s head of research, said that with Melbourne and Sydney both recording much greater concentrations of investor interest in current years, that tighter finance is more evident in the investor segment of the market.
Mr Lawless said:
‘The ramp up in housing supply has been more pronounced in these markets against a backdrop of slowing demand, and Sydney and Melbourne have also been more affected by the reduction in foreign buying activity…
‘Strong growth in these areas is starting to erode the affordability advantages of these markets, although lifestyle factors are also a strong driver of demand in many of these locations’.
Adelaide’s west values are up 3.4%, with Brisbane’s western suburbs having risen 3.5% and Canberra’s values up 4.1% over the past year.
House values in Geelong are up 9.6% for the year.
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