The country’s two largest capitals recorded the slowest growth in house prices in the country at the end of 2021, with Melbourne and Sydney recording declines for some homes.
Home prices in Sydney rose 0.4% from December to $ 1,374,970, while apartment values fell 0.2% to $ 835,104, according to new data released by the company CoreLogic property search Tuesday morning. In Melbourne, house prices fell 0.2% to a median of $ 997,928, and apartment prices rose 0.3% to $ 627,047.
Despite the declines, median house prices in Sydney and Melbourne ended the year 29.1% and 18.1% respectively higher than at the start. Median apartment prices have risen 15.3% in Sydney and 8.4% in Melbourne over the past 12 months.
CoreLogic Research Director Tim Lawless said an increase in the number of properties going up for sale at the end of the year was a major factor in relieving the Sydney and Melbourne real estate markets, in addition to the limitations of accessibility and people leaving states during the pandemic.
“The number of homes available for purchase has been a key factor underlying the trend in home values. Cities with above-average or near-normal advertised stock levels, such as Melbourne and Sydney, showed a more obvious slowdown compared to cities with consistently low advertised supply, such as Brisbane and Adelaide, ”said M Lawless.
“As inventory levels normalize and affordability constraints and tighter credit conditions lower demand, it is reasonable to expect growing conditions to be more subdued in 2022,” Mr Lawless said.
He said the top quartile of the real estate market is leading the downturn. The most expensive area for housing in all capitals rose 2.6% in the last three months of the year, compared to 3.7% in the low and mid-market.
“We’ve seen this trend in previous growth cycles, where more expensive housing markets have shown higher levels of volatility; house values tend to rise more during the recovery, but decline more during the down phase of the cycle, ”he said.