Home values across the nation’s premium housing markets have fallen as demand for blue ribbon property continues to wane, new data has found.
According to the RP Data-Rismark Stratified Hedonic Home Value Index, home values across the most expensive segments of the capital city housing markets fell by 5.6 per cent over the 12 months to June.
This is in stark contrast to the 12.2 per cent average gain recorded in the premium housing markets in 2009 and 2010, RP Data said.
Perth recorded the largest declines at the top end, with home values down 12.8 per cent over the year, while in Brisbane premium home values fell 10.9 per cent during the same period.
“Historically, the premium housing market has been quite sensitive to changes in other asset classes and business drivers", RP Data said. "The volatility in the equities markets together with the slowdown in business confidence and global economic uncertainty are all likely to be drivers of the slowdown in premium housing demand."
RP Data said the million dollar home market revealed what was occuring.
"Based on the June data, there has been a larger than average fall away across the million dollar segment of the market," it said. "The most significant falls in the number of transactions are in Brisbane and the surrounding coastal markets of the Gold Coast and Sunshine Coast where volumes are down by around 60 per cent compared with the five year average.
"Perth, which has the largest prestige market outside of Sydney and Melbourne, is showing a drop of close to 30 per cent in volumes compared with the average. Melbourne million plus transactions are down by 20 per cent while Sydney’s million plus transactions are down by the lowest margin of 11.4 per cent.”