Residential property prices fell 2.4% in December, mainly to Sydney and Melbourne, according to figures released Tuesday by the Australian Bureau of Statistics (ABS).
These declines occur after a period of strong growth during which prices in Sydney rose 68% and values ​​in Melbourne rose 54% in the five years preceding the December 2017 quarter.
The data also showed that stocks were falling faster than during the global financial crisis. Real estate prices in Sydney fell by 3.7% in December and have continued to fall since the 2017 quarter. This is the city's worst performance since the beginning of the ABS compilation of figures in 2003.
Property prices in Melbourne recorded a fourth consecutive quarter of decline (-2.4%).
"While real estate prices are falling in most capital cities, tighter credit supply and reduced demand from investors and homeowners have had a greater impact. pronounced on the larger real estate markets of Sydney and Melbourne, "said Bruce Hockman, chief economist for ABS.
Angie Zigomanis, Senior Director of BIS Oxford Economics, shared a similar analysis, noting that investors were a key driver of price growth in both the Sydney and Melbourne takeovers.
"The decline in investor demand is now at the root of lower prices," he said.
According to Zigomanis, low prices will continue to play on buyers' sentiment until 2019, with further declines in Sydney and Melbourne, according to forecasts.
The decline is not limited to the two largest cities in the country. The value of properties in Brisbane decreased by 1.1%. Perth (-1%), Darwin (-0.6%) and Canberra (0.2%) also showed a downward trend. By contrast, Adelaide and Hobart were the only markets to record positive growth in 2018.
ABS also revealed that, throughout the year, residential property price growth decreased by 5.1%. Declines were recorded in Sydney (-7.8%), Melbourne (-6.4%), Darwin (-3.5%), Perth (-2.5%) and Brisbane (-0.5%). , 3%).
The total value of the 10.3 million Australian residential dwellings decreased by $ 133.1 billion, to $ 6.7 billion. The average price of homes in Australia is now $ 651,100.
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