Australian home price downturn spreading wide

Business | 1 Mar 2019 3:01 pm

Australian home prices fell a further 0.7 percent last month and are now down by nearly 7 percent from their peak, as the downturn extends beyond Sydney and Melbourne, ABC News reports.

The latest February figures from CoreLogic show Darwin and Perth are once again leading the monthly declines in prices, slumping by 1.7 and 1.5 per cent respectively.

Sydney and Melbourne have still suffered the worst fall over the past year, down by 10.4 percent and 9.1 percent respectively.

Even the Brisbane market, which did not experience the same steep run-up in prices as the other two big capitals on the east coast, has seen prices fall over the month, quarter and past year, although the declines are modest.

Hobart was the only capital city to post an increase in prices last month, with a 0.8 percent rise showing that its property boom has not completely run out of steam, although its 7.2 per cent annual increase is slower than its recent peak growth rate.

Prices in Canberra and Adelaide have been relatively flat over the past few months, and only modestly higher over the past year.

CoreLogic's head of research Tim Lawless says price falls are now extending well beyond the previously booming Sydney and Melbourne markets.

"Every market in Australia is losing steam," he told ABC News.

"We are seeing this downturn becoming quite widespread geographically. I think that's a real indicator that lending conditions are throwing quite a dampening blanket over the market entirely."

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