Melbourne property prices are the fastest falling in Australian capital cities – sliding 3.9 per cent in the last three months.
Our city’s house prices are now back down to the level they were at in early 2017.
The median Melbourne house price has now dipped to $852,980 after peaking at $909,746 in December.
Domain’s senior research analyst Nicola Powell told The Age the price falls were a natural part of the property cycle.
“The falls follow one of the longest runs of consecutive growth in recent history when house prices rose 72.9 per cent in just over five years,” she said.
“Having this pullback is the natural dynamics of the property cycle.”
Daniel Gradwell from ANZ said further price falls are likely amid flat credit growth and falling auction clearance rates.
“We’re still thinking of price falls across Sydney and Melbourne of 10 per cent from peak to trough,” he told The Age.
“We’ve got ongoing credit tightening that is going to continue to keep impacting potential buyers over at least the next couple of months, but potentially longer.”
“And I think that sentiment issue is coming into play as well, where people feel like there’s no rush to get into the market like there was 12 or 18 months ago.”
The inner-city suburbs of Fitzroy, Richmond, South Yarra, Toorak, St Kilda and Middle Park were some to take the biggest hit over the last quarter, sliding nearly 8 per cent.
The median prices for each suburban area from Domain data are in the table below.
Melbourne region median house prices – September quarter
REGION MEDIAN PRICE QOQ CHANGE
Inner city $1,105,000 -7.9%
Inner east $1,350,000 -6.1%
Inner south $1,235,000 -5.0%
North east $705,000 -2.1%
North west $615,000 -1.6%
Outer east $755,000 -4.4%
South east $640,000 -1.5%
West $599,750 0.8%
