'Impact across the board': Australia's housing downturn enters a new phase
Housing prices in capital cities have been in decline. Now, the downturn has spread further.
The Southern Highlands property market has recently become a prime buying opportunity, according to Duncan Hill, founder of Duncan Hill Property. He believes it's the best time in the last five years to invest in the region. However, the NSW region has seen a decline in housing prices by about two to three percent over the past year, consistent with a broader housing market downturn across Australia.
According to Cotality, a property analytics firm, 47 out of the 50 non-capital regional markets experienced slower growth or a decline in home values. The Reserve Bank of Australia (RBA) has raised interest rates three times this year to combat inflation, which has led to reduced buyer readiness and increased negotiation power for existing buyers.
Federal housing tax reforms, including changes to negative gearing and capital gains tax rules, have also reduced overall demand, particularly affecting investor activity. PropTrack's July Home Price Index shows that regional areas experienced a 0.1 percent decline in house prices, compared to 0.5 percent in capital cities, while unit prices in regional Australia increased by 0.2 percent.
Australians are moving to regional areas for various reasons, including lifestyle and affordability. Higher interest rates have reduced borrowing capacity and consumer confidence, further impacting property decisions. Experts predict that the decline in regional dwelling values will continue over the coming months.
Written by urgent.news from SBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
