The number of property sales in affordable price ranges has remained dominant, but very affordable property sales are on the decline, while expensive property sales are on the rise, new research has found.
Detailed in CoreLogic’s latest Property Pulse report, the sales of dwellings at seemingly more affordable price ranges have declined over 2018, while sales for property selling for at least $1 million have been on the rise.
Conducted by CoreLogic research analyst Cameron Kusher, property sales data was analysed in segments of $200,000, and found the total proportion of property sales for each bracket for 2018 nationally were:
“The most prominent price point for sales was $400,000 to $600,000, while there were more sales of at least $1 million than there were below $200,000 or between $800,000 and $1 million,” Mr Kusher said.
“Over time, there has been a steady climb in the share of sales across the more expensive price points.”
As the more expensive properties are seeing values decline the fastest, Mr Kusher predicted the sales over $1 million bracket to decline alongside the current market softening, while some of the more affordable brackets could see some increases.
“As a result, we’d also expect slightly more sales occurring at lower price points; we don’t expect any material change in the share of sales under $200,000, in fact they may reduce further,” he said.
The breakdown of the bracket data for the last year, according to CoreLogic, is:
Across Australia, the combined capital cities saw sales under $200,000 at 1.8 per cent, sales of $1 million properties at 19.5 per cent while the leading bracket was $400,000 to $600,000 at 28.3 per cent.
Over the last 25 years, the combined capitals have generally followed the national trends of the decline of the below-$200,000 bracket and the rise of the over $1 million bracket.
The combined regionals were less impacted by the national trend; sales below $200,000 were at 12.9 per cent of all sales, over $1 million was at 4.7 per cent, and the leading price bracket was the $200,000 to $400,000 bracket at 38.1 per cent.
Sydney saw “virtually no” sales in the below-$200,000 bracket according to the report, while the leading bracket was the over-$1 million bracket at 37 per cent.
Regional NSW however, saw 9.6 per cent of sales under $200,000, 6.3 per cent of sales over $1 million, while the leading bracket was between $200,000 and $400,000 at 30.3 per cent.
Melbourne, much like Sydney, saw little to no sales under $200,000, while the over-$1 million bracket made up 21.7 per cent of all sales, and the leading bracket was the $400,000 to $600,000, making up 30.4 per cent.
Regional Victoria’s leading bracket was that between $200,000 to $400,000, making up 46.7 per cent of all sales, while the over $1 million bracket was at 2.2 per cent.
Only 1.7 per cent of all sales in Brisbane came from the below-$200,000 bracket, while over-$1 million was at 7.8 per cent. Meanwhile, the leading bracket was the $400,000 to $600,000 bracket, which made up 35.6 per cent of all Brisbane sales.
Regional Queensland saw a slight rise in its below-$200,000 bracket at 9.6 per cent, compared to five years ago at 8.1 per cent and 10 years ago at 7.9 per cent. The over-$1 million bracket was also on the rise at 6 per cent, up from 2.7 per cent five years ago. Overall however, the leading bracket was the $400,000 to $600,000 bracket.
Both low and high ends of the scale saw improvements this year in Adelaide, which is currently at 5.3 per cent in the under $200,000 bracket and 5.1 per cent in the over $1 million bracket. The majority of sales though were between $200,000 and $400,000, at 37.5 per cent.
Regional South Australia saw a substantial percentage of properties under $200,000 at 32.2 per cent of sales, but was beaten out by the $200,000 to $400,000 bracket, which accounted for 49.2 per cent. In comparison, all sales over $600,000 made up 5 per cent of sales.
Whilehas seen declines over the last five years due to its market cycle, sales below-$200,000, over-$1 million and between $200,000 to $400,000 have all increased over this same time period and are at 2.2 per cent, 9.3 per cent and 30.7 per cent respectively.
Regional WA saw sales under $200,000 at 24.7 per cent of sales, while the $200,000 to $400,000 bracket led the market with 43.4 per cent of all sales, while there were barely any sales over $1 million.
A clear majority of property in Tasmania were found to be priced below-$400,000 at 43.8 per cent, with the lead bracket in the $200,000 to $400,000 bracket. This figure however is lower than the previous five year’s 68.8 per cent. The above $1 million bracket was on the rise at 3.8 per cent, up from 1.4 per cent five years ago.
Regional Tasmanian property sales saw a similar story, with sales under $400,000 account for 77.6 per cent of all sales, with the $200,000 to $400,000 bracket seeing the most sales, while those above $600,000 made up just 5.1 per cent.
Darwin property sales saw 30.8 per cent selling for less than $400,000, down from 41.3 per cent five years ago. Over $1 million sales were also down at 2.2 per cent from 2.8 per cent five years ago.
Taking the lead in regional NT was the $400,000 to $600,000 bracket at 39 per cent, while in last place was the $800,000 to $1 million bracket at only 0.9 per cent.
Canberra’s largest selling price bracket was between $400,000 and $600,000 at 36.7 per cent, down from 45.5 per cent five years ago. Over $1 million sales saw a jump though to 8.8 per cent, compared to 2.8 per cent five years ago.