A market correction amongst Australian property has been a hot topic over recent months. And now as we head into the second half of the year, this prediction is starting to prove more and more likely.
Some recent research and evaluation can suggest that the trend is slowly taking off, in which there are a number of locations around the country seeing a fall in value.
Let’s take a look at each state and discuss exactly where this is happening.
To begin, regional Victoria is likely on its way to trumping the list for the most significant overall declines in home values. Moyne, part of the Warrnambool region, has seen a decrease in just over 21 per cent over the past 12 months to August.
There’s a possibility that the ill-performing dairy industry is a major factor influencing the decline.
House prices in Yarriamblack have also fallen almost 19 per cent, as well as Churchill properties in Gippsland with around a 14 per cent loss. These two suburbs have gone downhill in terms of value due to the Hazelwood power station shutdown.
Apartments in some Melbourne suburbs are also on the downturn, likely due to the abundance of new inner-city apartment blocks popping up rapidly. With these brand-new developments comes the burden of less interest amongst the older properties, forcing owners to reduce prices.
New South Wales
As Cowra has one of the highest rates of unemployment, home values have slumped 25.9 per cent this past year, with Wentworth and Buronga not far behind (24.7 per cent). Unpredictability in the agricultural industry is largely responsible.
Surprisingly, even Sydney wasn’t exempt from property downturn, with Lilyfield and Rozelle falling 20.4 per cent as the proposition of a motorway makes buyers a little nervous.
The poor-performing mining sector in Newcastle has seen unit prices in Jesmond and Shortland drop around 11 per cent.
Gladstone house prices are a major concern in Queensland recording a 28.2 per cent decrease in value as too many new properties are being built in the area. Townsville looking at the same trend with over a 26 per cent drop mainly due to high unemployment rates.
Devonport has seen a 10.7 per cent decrease, followed by Sheffield and Railton with 9.1 per cent.
Unit prices are only down a fraction compared to home values with a drop of 4.6 per cent in Prospect Vale with Launceston closely behind with non-existent growth.
Unemployment in the North has put a red mark next to Katherine, Rosebery and Bellamack, dropping 13.5 and 9.7 per cent respectively. While Darwin’s unit market on the other hand, has fallen around Fannie Bay and The Gardens just over 23 per cent.
As the mining boom out west comes to a screeching halt, property values amongst both houses and units have spiraled downward – causing some of the most significant reductions in the country.
South Hedland drastically saw properties drop almost 40 percent, with Port Hedland falling 34.5 per cent. Mass losses in Perth unit values have also been recorded.
Fremantle and Shenton Park were also down 20 per cent and 13.1 per cent respectively.