Premium property declines while affordable properties on the rise

Despite national dwelling values declining 0.4 of a percentage point, Cameron Kusher, CoreLogic analyst, said differing value bands can show different pictures worth observing.

“Overwhelmingly, the data shows long-term values at the more affordable end of the housing market increased at a faster pace than the most expensive properties and highlights that when there is a housing market downturn, lower-valued properties typically experience much more moderate declines than the higher valued housing stock,” Mr Kusher said.

“While national dwelling values are 0.4 [of a percentage point] lower over the past year, the most affordable 10 per cent of properties have seen values rise 1.8 per cent while the most expensive 10 per cent of properties have recorded a fall of 5.0 per cent.”

Specifically looking at combined capital cities, dwelling values declined by 1.1 per cent, the most expensive properties have fallen 5.7 per cent and the most affordable properties are up 1.3 per cent, while regional areas recorded a value rise of 2.2 per cent, the most expensive properties rose 2.1 per cent the most affordable properties rose 4.9 per cent.

Of particular note in the Property Pulse was that the most affordable properties have been constantly recording value growth over the last 20 years.

Here is how each capital city across Australia is performing:

Sydney

Most expensive property: down 7.3 per cent
Most affordable property: up 1 per cent

Mr Kusher claimed first home buyers were behind the fact that the most affordable property had not declined.

“A surge in first home buyers taking advantage of stamp duty concession is likely helping to keep a floor under housing demand across the more affordable valuation bands which is supporting the stronger conditions across the lower valued end of the market,” he said.

Melbourne

Most expensive property: down 3.5 per cent
Most affordable property: up 10.3 per cent

Comparable to Sydney, Mr Kusher said Melbourne’s most affordable properties were being supported by first home buyers.

“Similar to Sydney, first home buyers have become more active since July last year, likely supporting stronger housing market conditions at the more affordable price points,” he said.

Brisbane

Most expensive property: up 0.5 of a percentage point
Most affordable property: up 1.1 per cent

Adelaide

Most expensive property: down 1.1 per cent
Most affordable property: up 1.1 per cent

Perth

Most expensive property: up 2.1 per cent
Most affordable property: down 2.8 per cent

Hobart

Most expensive property: up 9.4 per cent
Most affordable property: up 18.4 per cent

Darwin

Most expensive property: down 13.5 per cent
Most affordable property: down 5.3 per cent

Canberra

Most expensive property: up 2.1 per cent
Most affordable property: up 2 per cent