Home values decline across Australia: Key suburbs hit hardest
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Photo by Jakub Zerdzicki
In a stark reflection of the shifting tides in the Australian property market, nearly 200 suburbs have seen a decline in home values over the past three months, with some areas experiencing significant drops. According to the latest PropTrack June Quarterly Home Values Index, 192 of Australia’s 3,762 house suburbs recorded a decrease in value, alongside 168 of the nation’s 1,888 unit markets.
Lalor Park, situated in the Sydney-Blacktown region, emerged as the worst-performing market for units, with values plummeting by 17 per cent, equating to a loss of $104,066. The median unit price in this suburb now stands at $514,808. Fairfield East, another Sydney suburb, followed closely with unit values falling by 9 per cent to $596,272. On the NSW Central Coast, Lisarow saw an 8 per cent drop in unit values.
Rounding out the top ten worst-performing unit markets were Pelican Waters in Queensland, Melrose Park in South Australia, Broadwater in Western Australia, and several suburbs in New South Wales and Victoria, including Wyoming, Huntingdale, Tregear, and Ocean Grove. Each of these areas recorded declines ranging from 5 to 6 per cent in the past quarter.
Anne Flaherty, a senior economist at REA Group, noted the unusual nature of these changes. “That is absolutely out of the ordinary,” she remarked, referring to the significant shifts in some suburbs. “Particularly, we are seeing that those suburbs that are relatively more affordable are attracting a high level of competition.”
Despite these declines, some suburbs have bucked the trend, with units in Ashcroft, Wahroonga, Belrose, Cartwright, and Sadlier experiencing double-digit increases in value over the same period. These areas have become attractive to buyers seeking affordable options below Sydney’s lofty median house price of $1.182 million. Flaherty explained, “The reality is because the median price of a home in greater Sydney is so high, for a lot of people that are looking for a middle ring suburban Sydney home, it’s just not even a possibility.”
On the housing front, Point Lookout in Queensland was the most affected, with home values dropping by 6 per cent, or $108,173, reducing the median value to $1,768,325. This was followed by Quindalup in Western Australia and Lorne in Victoria, where house values declined by 5 per cent, representing losses of $93,124 and $97,061, respectively.
Other suburbs experiencing a 4 per cent decline in house values included Hyde Park in South Australia, Jamberoo in New South Wales, Apollo Bay in Victoria, Berrimah in the Northern Territory, Nar Nar Goon North in Victoria, Byron Bay in New South Wales, and Cardigan in Victoria.
Over the past year, Nar Nar Goon North in Victoria, Blairgowrie in Victoria, Jilliby in New South Wales, and Rye in Victoria recorded the most significant declines in house values, each dropping by 10 per cent. Byron Bay, a favourite among celebrities, saw a 9 per cent decrease, alongside Bangholme in Victoria.
Despite these downward trends, Australia has seen a rise in the number of suburbs with median house values exceeding $1 million. A total of 107 suburbs joined the $1 million-plus club in the past three months, bringing the total to 1,418 suburbs. Sydney’s Bellevue Hill tops the list with a median house price of $9,844,492, followed by Vaucluse at $8,983,846. In Victoria, Toorak remains the most expensive suburb with a median house price of $4,500,128, while Cottesloe is Western Australia’s priciest suburb at $3,442,198.
Queensland’s Chandler leads the state’s luxury market with a median house value of $3,149,155, and St Peters is South Australia’s most affluent suburb with a median value of $2,226,612. Brisbane’s median home price recently surpassed the $1 million mark for the first time, reaching $1.015 million by the end of June.
Flaherty predicts that more Queensland suburbs will join the $1 million-plus club, noting, “There are currently 54 Queensland suburbs with median house values north of $950,000.”
As the Australian property market continues to evolve, these figures highlight the dynamic nature of real estate values across the country, with some areas facing significant challenges while others thrive in a competitive market.