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Values on the prestige end of town are falling while those on the other end are on the rise across the capital cities, according to the latest CoreLogic analysis.
The analysis, revealed in CoreLogic’s latest Property Pulse, looked at the decile, the 10 per cent proportions at the top and bottom ends of the market.
Despite national dwelling values declining by 0.4 of a percentage point, Cameron Kusher, CoreLogic analyst, said that differing value bands can show different pictures worth observing.
“Overwhelmingly, the data shows long-term values at the more affordable end of the housing market increased at a faster pace than the most expensive properties and highlights that when there is a housing market downturn, lower-valued properties typically experience much more moderate declines than the higher-valued housing stock,” Mr Kusher said.
“While national dwelling values are 0.4 [of a percentage point] lower over the past year, the most affordable 10 per cent of properties have seen values rise by 1.8 per cent while the most expensive 10 per cent of properties have recorded a fall of 5.0 per cent.”
Specifically looking at combined capital cities, dwelling values declined by 1.1 per cent, the most expensive properties fell by 5.7 per cent and the most affordable properties are up by 1.3 per cent, while regional areas recorded a value rise of 2.2 per cent, the most expensive properties rose by 2.1 per cent the most affordable properties rose by 4.9 per cent.
Of particular note in the Property Pulse was that the most affordable properties have been constantly recording value growth over the last 20 years.
Here is how each capital city across Australia is performing:
Sydney
Most expensive property: down by 7.3 per cent
Most affordable property: up by 1 per cent
Mr Kusher claimed that first home buyers were behind the reason why the value of the most affordable property had not declined.
“A surge in first home buyers taking advantage of stamp duty concession is likely helping to keep a floor under housing demand across the more affordable valuation bands which is supporting the stronger conditions across the lower-valued end of the market,” the analyst said.
Melbourne
Most expensive property: down by 3.5 per cent
Most affordable property: up by 10.3 per cent
Mr Kusher said that Melbourne’s most affordable properties were also being supported by first home buyers.
“Similar to Sydney, first home buyers have become more active since July last year, likely supporting stronger housing market conditions at the more affordable price points.”
Brisbane
Most expensive property: up by 0.5 of a percentage point
Most affordable property: up by 1.1 per cent
Adelaide
Most expensive property: down by 1.1 per cent
Most affordable property: up by 1.1 per cent
Perth
Most expensive property: up by 2.1 per cent
Most affordable property: down by 2.8 per cent
Hobart
Most expensive property: up by 9.4 per cent
Most affordable property: up by 18.4 per cent
Darwin
Most expensive property: down by 13.5 per cent
Most affordable property: down by 5.3 per cent
Canberra
Most expensive property: up by 2.1 per cent
Most affordable property: up by 2 per cent
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