Property prices have fallen in nearly one quarter of Aussie suburbs

By Jon Bragg

April 12 2022
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Most of the suburbs to record falls during the past quarter were in Melbourne and Sydney.

New analysis from CoreLogic has revealed that property prices fell in 23.6 per cent of Australian suburbs during the first quarter of the year, mostly in Melbourne and Sydney.

Of the 648 house and unit markets analysed across Melbourne, nearly half suffered falls during the quarter, with the biggest decline of 6.4 per cent recorded for houses in the inner suburb of Cremorne.

Meanwhile, property values declined in 38.6 per cent of the 917 property markets in Sydney, including the inner-city suburb of Beaconsfield with the biggest house price fall of 7.2 per cent.

“It is likely that slightly tighter lending conditions and higher average fixed rates are hitting the very top of housing markets first,” explained CoreLogic head of research Eliza Owen.

“These same areas are seeing some of the bigger jumps in advertised stock levels too, so as we see new demand for housing in these areas decline, buyers have more choice, more time for decision-making, and more power at the negotiating table.”

Ms Owen noted that the data was indicative of a gradual shift from the prolonged period of broad growth seen previously to a “multi-speed market that differed between capital cities, regions and property types”.

Nationally, house prices rose by 2.4 per cent in the first quarter of 2022 compared to growth of 5.8 per cent in the first quarter of 2021.

Brisbane and Adelaide remain the top performing capital city markets, where each of the 651 house markets have avoided a decline in prices on both a quarterly and annual basis.

When factoring in units, less than 1 per cent of the Brisbane and Adelaide markets recorded a quarterly decline.

Logan Central posted the biggest quarterly rise of 13.5 per cent in Brisbane, while increases of around 10 per cent were seen in Acacia Ridge, Capalaba and Yeronga.

“Conditions across South-East Queensland continue to be supported by strong interstate migration from those relocating from NSW and Victoria and the relatively affordable housing stock,” Ms Owen said.

“For those migrating from the southern states, a typical house in Brisbane was $857,000 in March, significantly less than Sydney’s median of $1.4 million.”

Largs North, Ottoway and North Haven had the largest quarterly price increases in Adelaide.

Property prices fell in 5.2 per cent of Canberra markets during the quarter, however prices for units did not fall in any of the national capital’s suburbs quarterly or annually.

Turning to the rest of the capital cities, the proportion of markets to suffer falls during the last quarter was 18.0 per cent in Darwin, 13.4 per cent in Perth and 10.9 per cent in Hobart.

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