Australian housing market is continuously falling from the last 12 months. Weaker housing prices in Melbourne and Sydney putting a great impact on the country’s property market. The bank’s tighten lending conditions also becoming a core reason of falling in property prices and down even further. With the national house values registering a continuous loss of 12 months. As per the property valuer – “The property prices will continue to fall over the next year.”
As last year the downfall started in the Australian property market. After the 5 years of a continuous housing boom, the capital cities like Sydney and Melbourne housing prices are now falling. The tighten credit standards, new dwelling supply, higher mortgage, and interest rates are expected to go up rather than going down and thus making buyers expecting that it will go down more.
The expert Property valuers say – The prime reason of housing market slowest growth and reduction in property investment activity is tighter lending conditions by banks and money lenders.” If getting a loan from bank or credit from money lender is still continues to be a tough task and needs to pass many tests to get it then it is going to put the worse impact on the property market.
Apart from the capital cities like Sydney and Melbourne, the Perth and Darwin property prices are falling rapidly too. Where the Sydney property market is dropped by 6 percent over the year the Melbourne has recorded 3.4 percent down in property prices. Whereas Perth lost 2.8 percent and Darwin lost 3.7 percent.
The only shine of hope has recorded in Hobart and nation’s capital city Canberra. Last month it was recorded slightly increase in the property price i.e 0.4 percent in Hobart and annually 9.3 and 0.3 percent in Canberra in the month of September and annually 2 percent.
Further declines in the dwelling price appear to be there over the next year due to the slow credit growth, high supply of properties, less demand of people, and high rational price expectation by the buyers.
According to the latest data housing values in the eight capital and big cities of Australia combined fell by 0.4 percent noted in the month of August. From the last year fall in the dwelling values is continues. Housing prices are down by 2.9 percent over the year and 3.1 percent from their peak in September 2018.
Over the year, unit prices were fell by 1.0 percent while detached houses were down by 3.5 percent this exhibits that generally, units have been performing better than detached houses. Units are generally cheaper than single houses.
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