Property downturn worsens with buyer activity 'particularly low'
Australian house prices have fallen for a fifth straight month, according to property data firm Cotality. It says the downturn has now spread to 93 per cent of suburbs in the nation's capital cities.
Australian property prices fell across all major cities last month, with Sydney, Melbourne and Canberra experiencing the steepest declines, according to the latest data from property data firm Cotality. The Reserve Bank's interest rate hikes and the government's decision to restrict negative gearing and increase capital gains tax have contributed to the downward trend.
The nation's median property value is now 3.6 per cent below its March record high. While prices in other mid-sized capitals like Adelaide and Perth also dropped, Sydney and Melbourne are seeing the most significant declines, with home values down 1.4 and 1.1 per cent, respectively, in August. Independent economist Alan Oster noted significant regional differences, with Perth still posting a 20 per cent annualized growth rate, while Sydney and Melbourne are slipping around 7 to 8 per cent.
The slowdown is affecting a broader range of suburbs, with the proportion of capital city suburbs recording a fall in home values rising from 45.8 per cent to 93 per cent. Cotality's data also reveals a decline in buyer activity, with transaction activity falling 15.5 per cent compared to a year ago. This has led to fewer properties hitting the market, but independent economist Alan Oster warns that unemployment could rise faster than expected, potentially worsening the property market further.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
