NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

'Largest annual fall we've ever seen': Australian property market notches fresh low

By Frank Chung
news.com.au·
1 Mar, 2019 02:33 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Australian house price falls have 'more to go yet'. Photo / 123RF

Australian house price falls have 'more to go yet'. Photo / 123RF

The Australian property market has notched 17 consecutive months of declines.

House prices in Sydney and Melbourne fell another 1 per cent in February to bring their annual declines to 10.4 per cent and 9.1 per cent respectively, CoreLogic data released on Friday show.

"That's the largest annual fall we've ever seen for Melbourne and for Sydney we'd have to go all the way back to 1983 to see a larger fall of 11.5 per cent," said CoreLogic head of research Cameron Kusher.

While the pace of decline eased slightly compared with December and January, national dwelling values fell another 0.7 per cent, bringing the total decline to 6.8 per cent since their October 2017 peak.

"You see larger declines over Christmas and New Year because there is less activity, but in saying that a national 0.7 per cent fall is still pretty large, annualise that over the year it comes to 8.4 per cent," Kusher said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Sydney and Melbourne house prices have now fallen 13.2 per cent and 9.6 per cent from their respective peaks in July and November 2017. For Sydney it marks the worst fall since the 1980s recession and Melbourne the worst since the early 1990s recession.

"It's not great news if you own a home or if you bought over the last two or three years in Sydney and Melbourne, but if you're looking to get into the market obviously things are getting more affordable," Kusher said.

The combined capitals are now 8.6 per cent down from their September 2017 high, worse than their GFC decline of 7.6 per cent.

Advertisement
Advertise with NZME.

But Kusher pointed out prices in Sydney and Melbourne were still 26.1 per cent and 27.5 per cent higher than they were five years ago.

"Just as the boom was concentrated in Sydney and Melbourne over the period from 2012 to 2017, so too is the post-2017 bust," AMP Capital chief economist Shane Oliver said in a client note. "But other cities are looking pretty soft too and Perth and Darwin have been falling for nearly five years."

Hobart was the only city to record price increases in February — dwelling values there increased 0.8 per cent to a median of A$457,186 ($475,941). Adelaide was flat on A$432,946.

Sydney was down 1 per cent to A$789,339, Melbourne 1 per cent to A$629,457, Brisbane 0.3 per cent to A$490,635, Perth 1.5 per cent to A$438,952, Darwin 1.7 per cent to A$397,867 and Canberra 0.2 per cent to A$594,351.

Discover more

Business

Uber addresses tipping conspiracy theories

01 Mar 12:35 AM
Business

Shark Tank star's downfall will cost her $300K

28 Feb 11:57 PM
Opinion

Comment | Slashing prices could hurt Air NZ in the long haul

01 Mar 04:42 AM
Business

Aussie woman accused of $41m bank fraud

01 Mar 01:02 AM

CoreLogic said while the February results marked a "subtle improvement" in the rate of decline, the housing market downturn was now "more widespread geographically and we aren't seeing any indicators pointing to the market bottoming out just yet".

Last month, research firm LF Economics warned that prices "could fall by half" and by 20 per cent in 2019 alone. Other experts generally predict total peak-to-trough declines in Sydney and Melbourne of around 20-30 per cent.

Oliver said the recent slight rise in auction clearance rates was typical for February and he was "doubtful" the slowing pace of declines was a sign the market was close to stabilising.

"A bit like a delayed Santa rally, clearance rates always bounce around a bit and a bounce was likely at some point as sooner or later sellers would start to accept more realistic prices," he said.

Oliver said the negatives driving the falls remained in place, including tight credit conditions that "will be given another boost from mid-year by the start-up of Comprehensive Credit Reporting which will see banks crack down on borrowers with multiple undeclared loans".

There is also the looming A$120 billion rollover of interest-only to principal-and-interest repayments, "record unit supply, an 80 per cent or so collapse in foreign demand, questions about building quality following recent building problems", Labor's proposed tax changes and falling prices feeding on themselves".

Advertisement
Advertise with NZME.

"Taken together these are driving a perfect storm for the Sydney and Melbourne property markets," he said. "In these cities we continue to expect a top to bottom fall in prices of around 25 per cent spread out to 2020. So there is more to go yet."

Kusher said house price relief would likely come in the form of an RBA rate cut and relaxed lending restrictions by APRA.

"The RBA is pragmatic enough to see if (falling house prices are) sucking consumption out of the economy, it may need to cut interest rates," he said.

APRA may also be "tapped on the shoulder" and told, "you're telling the banks they have to assess these loans on a rate above 7 per cent, but we haven't been at 7 per cent for years".

"Don't discount policy changes happening," he said. "There have been plenty of examples of housing busts (in other countries), the RBA and APRA know if you can avoid one of those you should."

Save

    Share this article

Latest from Business

Premium
Shares

Market close: IkeGPS continues run, up 8.6%

Premium
New Zealand

'Bringing the community together': Young new owner's plans for Hastings cinema

Premium
Retail

HelloFresh pleads guilty after ‘subscription traps’ tricked customers


Sponsored

Tired of missing out on getting to global summits to help grow your business?

Advertisement
Advertise with NZME.

Latest from Business

Premium
Premium
Market close: IkeGPS continues run, up 8.6%
Shares

Market close: IkeGPS continues run, up 8.6%

Gentrack dipped 4.23% after two large trades, one analyst said.

14 Jul 05:57 AM
Premium
Premium
'Bringing the community together': Young new owner's plans for Hastings cinema
New Zealand

'Bringing the community together': Young new owner's plans for Hastings cinema

14 Jul 04:29 AM
Premium
Premium
HelloFresh pleads guilty after ‘subscription traps’ tricked customers
Retail

HelloFresh pleads guilty after ‘subscription traps’ tricked customers

14 Jul 03:51 AM


Tired of missing out on getting to global summits to help grow your business?
Sponsored

Tired of missing out on getting to global summits to help grow your business?

14 Jul 04:48 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP