Expensive properties lead house price rebound

Below is CoreLogic data examining price growth across the three broad market segments – bottom 25%, middle 50% and top 25%. This shows that the most expensive properties have shown the most improvement, in terms of annual price growth, and are leading the nascent price recovery:

National:

Sydney:

Melbourne:

Brisbane:

Perth:

Adelaide:

After experiencing much larger falls than the other two segments (following a larger growth phase), the most expensive segment of the market is seeing its rate of falls slow. This is a trend that has played out before whereby premium housing values fall the fastest initially but also sees the falls cease earlier than other market segments.

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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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