A seismic shift in the Australian property market in the past 12 months has seen a dramatic drop in house prices in some of the country’s most sought after areas with falls of over $2 million in some exclusive suburbs, a new report has revealed.
The popular celebrity haven Byron Bay has seen a whopping $2.3 million wiped off the value of homes – a drop of 20.5 per cent, found CoreLogic’s annual Best of the Best report.
However in Sydney, the eastern suburb of Waverley suffered an eye-watering fall in house prices with $3.1 million or 22.7 per cent slashed from home values.
The seaside suburb of Birchgrove in Sydney’s inner west also experienced a huge decline with $2.6 million wiped from home values, while the northern beaches suburb of Narrabeen also suffered with $2.5 million or 26.8 per cent slashed from the value of homes.
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Another Sydney suburb Rosebery, located just 6km from the CBD, also had $1.8 million dropped from the value of homes in the area.
Meanwhile, the trendy inner city suburb of Surry Hills also saw a 25.4 per cent drop adding up to $1.7 million knocked off the value of homes with Redfern experiencing a similar fall knocking off $1.6 million on a house in the area.
The inner west suburbs of Camperdown, Newtown and Chippendale, as well as Darlington, also had $1.5 million slashed from the value of properties.
CoreLogic head of research Eliza Owen said housing markets were impacted differently by eight consecutive interest rate hikes.
“More expensive markets tended to see sharper declines, while the more affordable segment of the market where buyers typically do not have to extend themselves as much to buy into, saw greater resilience to increases in interest rates,” she said.
“The second trend is the pace of decline has been slowing on a broad basis since September. While this may be seen as a positive by some, there is still risk of the decline re-accelerating in the year ahead.”
In Melbourne, the inner south suburb of Malvern East experienced the biggest drop in the state with house values falling by a whopping $2.3 million, while in Brisbane the inner city suburb of Wilston had $1.4 million knocked off its value in the past year.
In Adelaide, Toorak Gardens suffered a $2 million decline in the value of homes in the suburb, while the Perth suburb of Mount Claremont saw house prices drop by $1.7 million.
Hobart’s Sandy Bay suffered the biggest fall with $1.3 million wiped from the value of homes, while the Canberra suburb of O’Connor saw $1.5 million slashed from home values.
CoreLogic economist Kaytlin Ezzy added suburbs in Sydney’s city and inner south, Northern beaches and Eastern suburbs regions dominated 2022’s list for largest house and unit value declines.
“Houses in Narrabeen, Surry Hills, and Redfern recorded the most significant falls in value over the year, down more than 25 per cent, while unit values in Centennial Park and Mona Vale fell by 23.1 per cent and 20.8 per cent respectively,” she said.
“At the other end of the scale, Adelaide suburbs dominated the list for strongest annual appreciation in value across both property types, with house values across Davoren Park rising by 34.7 per cent, and unit values in Seacliff Park 41.4 per cent above the levels recorded this time last year.
“Adelaide’s resilience has been a consistent feature of the housing market in 2022. While down 0.9 per cent from the July peak, dwelling values across the city are still 13.4 per cent above the level recorded this time last year.
“Adelaide’s relative affordability and persistently low advertised stock levels have helped insulate it from the worst impacts of rising interest rates.”
Meanwhile, PropTrack data showed the Sydney suburbs with the greatest change in median value were Box Hill at 54 per cent taking house prices to $1.27 million followed by the new suburb of Austral with a 53 per cent change to $1.01 million.
PropTrack senior economist Eleanor Creagh said the out performance of more affordable regions and the peripheral parts of Sydney is clear over the last year.
“Higher willingness to pay for larger homes and reduced commuting requirements have seen these areas perform strongly since the onset of the pandemic,” she said.
“In addition, with the fast pace of rate rises rebalancing housing market conditions across the country and reducing buyers’ borrowing capacities and budgets, more affordable regions have held up better in 2022.”
Its data also showed the top 10 Sydney suburbs with the highest median price with Vaucluse coming in at $9.1 million, Bellevue Hill at $8.05 million and Longueville at $6.3 million.
“Many of the highest priced suburbs in Sydney are great places to live, whether for buying or renting a home, and offer a high degree of convenience for residences,” said Ms Creagh. “These sought-after suburbs are typically in desirable locations, close to local amenities like shopping precincts, green spaces, parks and in many cases, ocean or waterfront views, garnering a premium price.”
Story Credit: news.com.au