Yesterday we released data on falling house prices in Sydney`s suburbs, and today we look at Melbourne, Australia`s other capital city.
Melbourne`s house prices fell 0.5 percent in May from a month earlier, after falling 1.2 percent over the past three months, surpassing Sydney as the worst performing city in the capital, according to the latest figures released by Corelogic, Australia`s leading property research firm.
Prices in Melbourne rose 2.2 percent in the year to May 2018, much lower than the double-digit increase in the past few years, as a result of the recent sharp softening in housing prices.
It is worth noting that different areas of Melbourne, different housing types of decline is not synchronized. On average, apartments are more resistant to falling than single-family homes, and cheaper areas are more resistant to falling than the most expensive areas.
In the case of single-family housing, the largest declines in the past year were in inner urban areas (- 6.1 percent), in the inner east (- 5.0 percent) and in the inner south (- 4.1 percent). In terms of the apartment market, the biggest drop in the past year was in the northwest, down 1.3 percent year-on-year.
Credit tightening and affordability are the main reasons for the current decline in house prices in Melbourne, particularly in the upmarket housing market.
