Arabic version: أسعار المساكن الأسترالية تتجه للانخفاض في المدن الكبرى

According to The Guardian, Australia’s property market is undergoing a rare price correction, with Cotality data showing that most capital cities recorded housing-price falls over winter. Sydney led the declines, while rising interest rates and less favourable tax settings for investors were identified as factors accelerating the downturn.

The weakness is expected to continue if higher inflation results in further interest-rate rises, which could reduce housing demand. However, the changes are uneven across the market. Suburbs that had previously posted the largest price gains have generally cooled fastest, while more affordable homes are more likely to retain value because of demand from first-home buyers supported by the government’s low-deposit scheme.

Homeowners who have held their properties for longer are also likely to remain on substantial gains despite the latest falls. In Brisbane, Perth and Darwin, home values are still more than 10% higher than they were 12 months earlier.

The recent declines have done little to improve affordability for prospective buyers, as higher mortgage repayment rates have reduced borrowing capacity. AMP said the price movement was “just a flick off the top after a 50% surge since the pandemic”.