Australian property sales crash to 23-year low

Below are the latest charts, derived from CoreLogic data, plotting annual sales volumes across Australia’s capital cities to March 2019:

Sydney (-46%), Melbourne (-37%), Brisbane (-29%), and Perth (-36%) are all down massively from their most recent peaks, whereas across the combined capitals sales are down 33%. In fact, the last time annual sales volumes were this low was in October 1996.

The following charts plot the annual changes in sales volumes and dwelling values, as measured by CoreLogic, which shows a very strong correlation:

That said, the sales volumes data obviously lags the dwelling price data by three months and precedes the May Federal Election. According to CoreLogic’s July chart pack, transaction volumes have steadied over recent months:

The state governments will be hoping this is true, because the collapse in sales volumes in the primary driver of the stamp duty bust that is wrecking their budgets.

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Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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