Login
iscover
An increase in dwelling values during the 2018 calendar year has seen a reduction in sales at lower price points while those in the million-dollar-plus category have become more common, new CoreLogic data has found.
Over the 2018 calendar year, the share of sales across six price points, from less than $200,000 to more than $1 million, revealed three interesting trends.
The price points and their share of sales, according to the latest CoreLogic Property Pulse, are as follows: 6.1 per cent under $200k, 24.8 per cent to $400k, 28 per cent to $600k, 18.7 per cent to $800k, 8.7 per cent to $1 million and 13.8 per cent above $1 million.
Research analyst Cameron Kusher said that the concentrations were towards the high end.
“The most prominent price point for sales was $400,000 to $600,000, while there were more sales of at least $1 million than there were below $200,000 or between $800,000 and $1 million,” he said.
Mr Kusher said that this distribution has shifted significantly over time; from 1993 the majority of sales were below $200k, whereas in 2018 virtually none of them were.
“Over time, there has been a steady climb in the share of sales across the more expensive price points,” he said.
“Across the combined capital cities, sales below $200k accounted for just 1.8 per cent of all sales, while sales of $1 million properties accounted for 19.5 per cent of all sales.
“Sales of properties under $200k in regional Australia accounted for 12.9 per cent of all sales over the year, the third largest price point for sales. Sales of $1 million properties in regional Australia, at 4.7 per cent, are much less common than they are across the capital cities.”
Mr Kusher said that there has been a clear shift over the past five years.
“While you’d expect this in the markets that have seen strong value growth such as Sydney, Melbourne and Hobart, we have also seen it across markets where value growth has been much weaker.
“Values are currently declining fastest across the more expensive properties, and over the coming year, we would expect to see the share of sales over $1 million to reduce as values continue to fall.
“As a result, we’d also expect slightly more sales occurring at lower price points. We don’t expect any material change in the share of sales under $200k; in fact, they may reduce further.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.