- The $116,500 decline follows a 27.9% surge, or roughly $252,900, in the city’s dwelling values from the COVID-trough to the peak.
- Melbourne's house values have declined by 6.4% since 14 January
- Darwin is the only capital city to have not recorded a decline in house values
Sydney home values are down by 10.1% since the February 2022 peak of the current housing cycle, CoreLogic’s daily home value index has revealed.
The $116,500 decline follows a 27.9% surge, or roughly $252,900, in the city’s dwelling values from the COVID-trough to the peak.
Tim Lawless, CoreLogic Research Director, said it was unsurprising that Harbour City was leading the capitals in the current downturn given it is the most expensive Australian city, and has the greatest sensitivity to rising interest rates.
“Although Sydney’s housing values were already in decline when the rate hiking cycle began, the pace of decline accelerated sharply following the first interest rate increase in May,” he said.
“Sydney values are now down –9.5% since 3 May, and -10.1% since peaking on 13 February this year.”
Tim Lawless, CoreLogic
Sydney dwelling values since January 2020
The daily index shows Melbourne’s values are second to Sydney’s and have fallen by 6.4% since 14 January. Brisbane is down -6.1% since its 19 June 2022 peak. Adelaide and Perth have both declined less than – 1% since their peaks in August.
Hobart and Canberra are both down -4.7% and -4.4% since their month-end peaks.
Darwin remains the only capital city where housing values have not trended lower, although they remain 10% below the record high in 2014.
“Despite the -10.1% decline so far, Sydney home values still have a way to go before wiping out the capital gains accrued over the recent growth cycle. Home values would need to fall a further -11.4% to get back to the levels seen at the onset of COVID,” Mr Lawless said.
“The good news for Sydney home owners is that the rate of decline has continued to moderate through October, improving from a -2.2% decline over the four-week period ending 3 September to -1.3% over the most recent four-week period ending 23 October.”
What is happening on the ground in the Sydney market?
Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin noted the end of year is closing in, with many people wanting to be in a new home by Christmas, vendors and sellers alike need to act now.
“And plenty are,” he said.
“The number of auctions in Sydney is encouraging week-on-week and the environment of stable prices is understood by buyers and sellers, supporting balanced negotiations and steady transaction activity. “
Mr McKibbin noted the rental market continues to receive strong attention and the lack of options for tenants continues to bite.
“Rental prices remain high as a result of the supply shortage, compounding other cost of living concerns for many people,” he said.
Budget time
Mr McKibbin also noted the federal budget, which will be handed down by Treasurer Jim Chalmers tomorrow night, which he noted is expected to be a “tough one” given tough macroeconomic conditions globally. He also noted more housing reform should be on the cards to meet increased demand.
“As previously announced, the forthcoming increase in the number of permanent migration visas, designed to address shortages in the economy, will also introduce new pressure to housing supply in New South Wales,” he said.
“The Federal Housing Minister has called the Australian Government’s housing reform ‘ambitious’ but in New South Wales, those ambitions will only be realised through measures to increase supply.
“Be it through reforms to planning, taxation or otherwise, the need to address supply in the state remains as pressing as ever.”
