The largest unit price falls were in Little Bay and Woolloomooloo, down 24.6 per cent and 20.4 per cent, then Eastwood, Paddington, Mona Vale and Newport.
That is according to the latest CoreLogic data, which shows Sydney recorded the largest decline in values for houses and units, at 13.4 per cent.
Prices in Sydney and Melbourne are likely to fall by 1.5 per cent a month through the rest of 2022. But the national drop could be even larger, at 20 per cent by the end of 2024, depending on how people respond to both the fall in prices and to even higher interest rates.
Sydney house prices have had their steepest annual fall on record, declining 10.9 per cent last year as rising interest rates took a toll on buyer demand and spending power. Sydney's median house price fell more than $170,000 to $1,413,658 last year, the latest Domain House Price Report, released on Wednesday, shows.
House prices in some of Sydney's most expensive suburbs have had sharp falls amid the market downturn, recording drops of more than $500,000 in some premium pockets. Cremorne, Clovelly and Cammeray recorded some of the largest median price falls last year, the Domain House Price Report for the December quarter shows.
If the price rises are maintained for the rest of the year, home values will end up about 4% higher in 2023, defying earlier predictions of sharp falls of 10% or more for this year, CoreLogic says. “Economists are shredding their previous price forecasts,” said Sally Tindall, research director for RateCity.
Prices across the country are set to slide by up to 10 per cent by the end of 2023, with Sydney, Brisbane and Canberra to be worst affected by the downturn. The latest PropTrack report predicted property values in Sydney, Brisbane and Canberra could slump by as much as 11 per cent as successive rate hikes bite.
Therefore, the median price is expected to be $1,405,000 in the June 2025 quarter, with this figure representing an overall decline of some 8% from the June 2022 level.
Prices are forecast to fall in all capital cities in 2023, Mr Kusher said. The largest declines are expected in Sydney, Brisbane, and Canberra, with each tipped to see drops of between 8% and 11%. Melbourne and Hobart are likely to each see home prices fall by between 7% and 10%, Mr Kusher added.
Real estate in Sydney is in high demand and with the level of returns buyers expect to achieve, it's not really surprising! In recent weeks, the Australian Bureau of Statistics (ABS) revealed details of its March quarter Residential Property Price Index (RPPI).
Australia's property market is considered to be among the most expensive in the world, with Sydney and Melbourne regularly featuring among the list of least affordable housing markets, along with some US and Canadian cities. One measure of affordability is the household debt-to-income ratio.
Westpac has revised its house price forecasts, with dwelling values expected to stabilise in 2023 (initially forecast a -7% decline). National dwelling values are predicted to rise 5% in 2024, up from 2%.
The OECD's stark warning of a “rout” in house prices that ripples across the entire economy has raised the spectre of the crash of 1987.
au's analysis showed that, even if prices rose at a similar rate to inflation over the next five years, the median house price would still be near $1.5m in 2027.
Nationwide prices are expected to rise by approximately 2 per cent by the end of 2023. However, as the RBA potentially cuts interest rates before the end of 2023, demand pressures will contribute to a favourable environment for property prices.
The average annual growth rate for well-located capital city properties is about 7%, which means that Australia's median dwelling price should be around $1.1 million in 2030. But some properties will outperform others by 50-100% in terms of capital growth, so take these house price predictions with a big pinch of salt.
House prices are expected to soften further in 2023 but falls may not be as severe as some expect if the RBA stops increasing rates before the cash rate reaches 4%.
In Sydney, one of the world's most overvalued property markets, prices are down 13 per cent from their peak while sales fell 28 per cent last year compared with a 17 per cent decline nationwide, according to CoreLogic data.
By the end of 2024, Sydney, Melbourne, Canberra and Hobart are forecast to rise by 2 per cent, Brisbane by 5 per cent, Perth by 4 per cent and Darwin by 3 per cent. Nationwide, house prices are set to increase by 3 per cent, but Adelaide is expected to drop by 1 per cent.
Sydney's house prices are poised for a sharp recovery, which is not far off, as the market continues to rise faster than expected, CoreLogic says. Values jumped by 1.4 per cent in March, more than four times faster than the previous month and the sharpest increase since October 2021, data from CoreLogic shows.
By 2024, the bank is expecting house prices to gain 5 per cent in both Sydney and Melbourne, that prices should rise 6 per cent in Brisbane, by 8 per cent in Perth, and that there should be a 5 per cent gain nationwide.
High house prices in Australia are primarily driven by supply and demand imbalances, tax policies, low-interest rates, and rising household debt.