2018 was a tough year for Australian property values

The Australian property market experienced its weakest conditions since 2008’s Global Financial Crisis in 2018, according to new data from CoreLogic.

Figures from CoreLogic show that dwelling values fell by 4.8 per cent nationally throughout the year, led mainly by declines in Sydney and Melbourne. Prices in Sydney were down by 8.9 per cent, and 7 per cent in Melbourne.

However it’s not just Australia’s major cities that struggled in 2018, with weaker conditions experienced across most of the country.

As CoreLogic head of research Tim Lawless pointed out, “most regions around the country have reacted to tighter credit conditions by recording weaker housing market results relative to 2017.”

One of the two exceptions to this was regional Tasmania, where the pace of capital gains was higher relative to 2017 resulting in a nation leading 9.9 per cent gain in values over the 2018 calendar year.

Conditions in Darwin also improved. The annual rate of decline here improved from a decline of 8.9 per cent in 2017 to a fall of just 1.5 per cent in 2018.

Last year’s figures shouldn’t be viewed in isolation however with CoreLogic noting that although Sydney and Melbourne recorded the weakest conditions in 2018, the peak to current declines are much less severe relative to Perth and Darwin, where values have been falling since mid-2014.

Sydney values are now 11.1 per cent lower than their peak in July 2017 and Melbourne values are down 7.2 per cent since they peaked in November 2017.

In Perth and Darwin where the downturn has been going for much longer, they have experienced cumulative falls of 15.6 per cent and 24.5 per cent respectively.

At the end of the 2018 calendar year, Sydney values were back to where they were in August 2016, while Melbourne values were back to their February 2017 levels.

Perth values were back to levels last seen in March 2009 and Darwin dwelling values were at October 2007 levels.

The full report can be found at the CoreLogic website.

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