Property Prices Continue To Fall In Australian Capital Cities


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Falling home prices have extended beyond Sydney and Melbourne. According to the latest February figures from Care Logic, Darwin and Perth are leading in monthly price declines although Sydney and Melbourne have suffered the worst price decline in the past year. Brisbane that did not suffer from steep run-up in prices as the two big cities on the east coast is experiencing price falls this month.

Hobart is the only capital city that showed an increase in prices last month which shows that the property boom has not completely run out of steam. In Canberra and Adelaide, prices have been relatively flat over the past months but modestly higher than the past year.

CareLogic head of research Tim Lawless told ABC News that every market in Australia is losing steam which is an indicator that lending conditions are weighing on the property market. Besides the tough lending standards, there are other factors like new supply coming to the market.

There is newly constructed housing particularly in the high-rise apartment sector; however, there is a slowdown in foreign buying activities. There are also affordability challenges in markets like Sydney and Melbourne even if property values have come down.

A lot of properties are offered for sale but owners of existing dwellings are reluctant to sell in a market with falling prices and selling conditions are challenging. Because properties are becoming more difficult to sell, inventory levels are quite high. Mr. Lawless predicts the market will probably level out in 2020 and when interest rates will go down.

Meanwhile, homeowners can start improving their homes while waiting for property prices to go up. A good option will be a consultation with roofing specialist in Sydney on whether a replacement is better than roof repairs. There are exceptional materials like slate that can enhance aesthetics as well as durability.