Values of Sydney apartments, townhouses and semi-detached homes hit an almost six-year low in the September quarter, according to new data from the Australian Bureau of Statistics.
The values fell 1.4% in the September quarter, the biggest quarterly decline since December 2011 when values dropped 2.3%.
Housing values have seen a similar downturn in Sydney, falling 1.3% in the September quarter and proving that the regulatory crackdown has effectively cooled Sydney’s previously overheating market.
The drop in Sydney prices has brought first homebuyers back to the market, with numbers surging 70.9% year on year in the September quarter.
In June, the NSW Government developed a package of measures including increased grants and abolishment of stamp duty, to make life easier for first homebuyers trying to enter the market.
Sydney’s slowing market has pulled down the national average, with the national house price index falling 0.2% in September.
The figures were weaker than expected, with anaylsts forecasting a 0.5% increase. It is now becoming widely accepted that the Aussie housing boom is over and economists are beginning to consider what kind of landing the country is in for.
At the moment, a relatively soft landing seems to be on the cards but there is still some cause for concern.
More up-to-date indicators suggest that prices fell further in the fourth quarter and may even decline next year,” Capital Economics chief economist Paul Dales, told The Australian Financial Review. “That could make 2018 a challenging year for the wider economy.”
Source: The Australian Financial Review