Australian Home Prices Continue to Fall
For the 11th straight month in August, prices of homes in Australia fell according to CoreLogic. The data released also indicated that it will continue to fall in September, and it looks like that is the case in the next couple of months. Prices of homes in Australia’s biggest cities such as Sydney, Melbourne, Brisbane, Perth, and Perth fell an average of 0.2%, making the decline 0.5% for the whole month of August. And because there has not been an upward move on its value, the decline would probably extend to a 12th month.
The decline in prices nationally have reached 3.2%, while in Sydney and Melbourne, the decrease reached about 4%, and in Perth 2.8%. Sydney values have decrease twice as much over the past year, and Melbourne and Perth have decreased over 2.6%. On another note, prices in Adelaide and Brisbane increase about 0.8%.
So, what were the elements that contributed to or played into this decrease?
We have talked about the Royal Commission into banking, which really played a huge part in the property market. Banks have really tightened when it comes to lending. There is also increase in property listings, as well as reduction in foreign investor activity. There is also a huge difference in prices in Sydney and Melbourne compared to other parts of Australia.
Perth is strong in terms of commodity market; however, it is still struggling to recover from the end of the mining infrastructure boom.
There are also ways to attract more buyers in an area. One of which is the increase in infrastructure, which has been such an effective strategy in Sydney. Because of the development of the Sydney Metro Northwest which was formerly called the North West Rail Link, has been generating a lot of interest from homebuyers and investors. This development along with other infrastructure will definitely boost the sales ang gain more interest from people in the next few months.