Australian property values tumble 0.5% in May

CoreLogic’s dwelling value results for May are out at the 5-city level, with values falling 0.48% over the month led by a heavy 0.91% decline across Melbourne:

It was the first monthly decline since June 2019:

Over the May quarter, dwelling values rose by 0.4% across the major capitals, with growth slowing fast:

Falls across Melbourne dragged the 5-city index down, offsetting decent quarterly rises across Sydney, Brisbane and Adelaide:

The next chart plots quarterly price growth by major capital, which shows the sharp slowdown:

In the year to May 2020, home values rose by 9.9% at the 5-city level, driven by Sydney (+14.3%) and Melbourne (+11.7%), whereas Perth was still in the red (-2.1%):

The next chart, which tracks trend annual price growth, suggests the Australian housing market has hit a turning point, led by Sydney and Melbourne:

Australian housing is clearly in a bear market. How long and deep it runs is anybody’s guess and will depend largely on how the economy rebounds as it opens back up.

Leith van Onselen

Comments are hidden for Membership Subscribers only.