CoreLogic’s Cameron Kusher has produced new research showing that values in the most expensive 25% of the property market are falling the fastest, whereas values for the most affordable 25% have actually risen in value:
Over the March 2018 quarter, national data shows that dwelling values were down by 0.5%, however digging below the surface reveals the modest fall in values was confined to the most expensive quarter of the market. The most affordable properties increased in value by +0.7% compared to a +0.3% increase across the middle market and a -1.1% decline across the most expensive properties.
Over the past year, dwelling values within the least expensive quartile increased by +0.7%, middle 50% values were +2.7% higher and top 25% values were +0.1% higher. With value growth slowing, the trends of the past are being repeated with the most expensive properties experiencing the most rapid slowdown in value growth. During the growth phase, it was these same properties that were also recording the highest rate of capital gain.
The full text of this article is available to MacroBusiness subscribers
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
