Arabic version: سوق الإسكان الوطني يشهد أكبر انخفاض منذ 2022

June saw the biggest monthly fall in national housing values since 2022. According to ABC News, home values dropped by 0.4 percent nationally, driven primarily by declines in Sydney and Melbourne, which fell by 1.2 percent and 1 percent, respectively.

The decline reflects a broader trend, as the once-booming markets of Brisbane and Perth are still rising but at a much slower pace, with Adelaide showing no growth. Cotality’s research head, Gerard Burg, noted that the June data indicates a critical turning point for the national market, which is now fully in decline. Factors contributing to this downturn include rising interest rates, deteriorating consumer sentiment, and recent tax policy changes.

Revised data suggests that the national housing market peaked in March, with values declining by 0.7 percent over the June quarter. The REA Group’s PropTrack index corroborates this trend, reporting a 0.3 percent drop in national prices for June, marking the third consecutive month of decline.

While Sydney and Melbourne lead the downturn, other cities are experiencing mixed conditions. Darwin saw the strongest growth at 1.4 percent in June, while Hobart increased by 0.6 percent. Economists note that the imbalance between supply and demand is influencing these varying conditions, with Sydney’s greater stock available for purchase leading to a faster decline.

Investor activity is reportedly slowing due to uncertainty surrounding the federal government’s housing tax changes. Westpac senior economist Matthew Hassan stated that applications for investment loans have decreased by about 20 percent, with expectations of continued weakening in investor demand as the new policies take effect. Despite the slowdown, existing investors are not rushing to sell, which may mitigate the risk of a larger downturn in the market.