More than a quarter of Australian suburbs see value drop

Nearly 30% of the 3,655 suburbs examined across Australia experienced falling property values in the three months leading to August, according to CoreLogic’s September 2024 Housing Chart Pack.

This trend highlights a growing number of suburbs experiencing a downturn, driven by high interest rates and affordability concerns.

Victoria leads the value declines

Melbourne saw the highest concentration of value drops, with 79.1% of its suburbs recording declines. Regional Victorian suburbs followed closely at 73.8%. Notable areas of decline included Ballarat, Geelong, and Bendigo.

Other cities seeing property value shifts

More than half of the suburbs in Hobart, Darwin, and Canberra saw property values drop, while Perth stood out as a city where every suburb reported rising values over the quarter.

This contrasts with last year’s data when 60% of Perth suburbs were in decline. Ezzy described this as a “remarkable turnaround,” with value growth ranging from 1.8% in Marmion to 10.6% in Henley Brook.

National trends indicate broader market shifts

The report highlighted that nationally, 29.2% of suburbs experienced quarterly declines in property values by August, a significant jump from 17.2% just a year ago.

In Sydney, the share of declining suburbs rose from 3.8% last year to 25.9% this year, reflecting broader economic and market pressures.

“In the three months to August 2024, there was not a single suburb analysed where prices had fallen,” Ezzy said.

Looking ahead: Value declines likely to continue

As the spring selling season approaches, Ezzy predicts a further slowdown in property values, particularly in markets like Adelaide and Brisbane, where some early signs of easing are already appearing.

“It’s likely this easing will continue into the seasonally busier spring selling period, with additional listings putting further downward pressure on values,” she said.

Key market stats and figures

• The total value of residential real estate in Australia rose to $10.95 trillion in August.
• Sales volumes saw an increase of 9.3% year-over-year, with 40,428 transactions recorded in August alone.
• Despite the overall market slowdown, certain areas, including Perth and Adelaide, saw faster property turnover, with median selling times at 11 and 27 days, respectively.
• Rent growth slowed nationally to 7.2%, though Canberra and Hobart saw rental prices drop.
• Dwelling approvals spiked in July, led by a 33.7% increase in unit approvals.

Investor lending shows strength

Despite elevated interest rates, lending to property investors grew by 5.4% in July, marking a 26.5% rise compared to the same time last year. Investor activity remains robust, contributing to the overall increase in housing market value, CoreLogic reported.

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