High-end property hit by steepest price falls as affordable end of Australia’s housing market proves resilient

Higher-value homes record larger declines

Higher-priced homes are experiencing some of the largest falls in Australia’s current housing market downturn, while more affordable properties have remained comparatively resilient.

Upper-quartile house values in Sydney and Melbourne are now more than 10% below their previous peaks, according to Cotality analysis reported by The Guardian.

The difference between higher and lower-value properties has been most noticeable in Sydney and Melbourne. Perth, Adelaide and Brisbane recorded more even and modest price declines over winter.

National property values soften

National dwelling values fell 3.1% over the three months covered by the latest data, although property values remained higher over the previous 12 months.

In Sydney, upper-quartile houses are valued at $2.1 million and above. In Melbourne, upper-quartile houses are valued at approximately $1.2 million and above.

More affordable homes prove resilient

Lower-priced properties have experienced smaller declines.

House values in Sydney’s lower quartile were less than 6% below their peak, while Melbourne’s lower-quartile house values were less than 4% below their peak.

Buying activity has also remained stronger at lower price points, including properties that fall within the price limits of the Australian Government’s 5% deposit scheme for eligible first-home buyers.