Sydney property prices fall for first time since 2020: CoreLogic

For the first time in 17 months property values in the nation’s largest and most expensive capital city, Sydney, have fallen according to new figures from CoreLogic.

Released yesterday, CoreLogic’s latest Home Value Index recorded a 0.1% monthly drop in Sydney’s median home value to $1,116,219, though the median value in the city is still 22.4% higher over the year.

Sydney’s slight price drop wasn’t enough to halt the continued uplift in the national median home value though, which rose 0.6% to a new high of $728,034.

“Sydney and Melbourne have shown the sharpest slowdown, with Sydney (-0.1%) posting the first decline in housing values since September 2020, while Melbourne housing values (0.0%) were unchanged over the month, following similar results in December (-0.1%) and January (+0.2%),” said director of research at CoreLogic, Tim Lawless.

The picture was different in Adelaide and Brisbane which, alongside many regional areas, recorded notable increases in value over the month.

“Conditions are easing less noticeably across the smaller capitals, especially Brisbane, Adelaide and Hobart, where housing values rose by more than 1% in February. Similarly, regional markets have been somewhat insulated to slowing growth conditions, with five of the six rest-of-state regions continuing to record monthly gains in excess of 1.2%.”

Australian home value changes - CoreLogic Home Value Index (March 1, 2022)

One of the major reasons for the difference in price movement is the issue of supply. According to Lawless, buyers have far more choice in Sydney and Melbourne at present, while the pickings remain relatively slim in the smaller capital cities.

“The cities where housing values are rising more rapidly continue to show a clear lack of available properties to purchase. Total listings across Brisbane and Adelaide remain more than 20% lower than a year ago and more than 40% below the previous five-year average.”

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