Property price growth has stalled, with major falls in Melbourne and Sydney as higher interest rates, lower affordability and the federal government’s overhaul of tax incentives combine to dampen values.
Figures from asset data firm Cotality published today show that until May, when the Reserve Bank pushed official interest rates to 4.35 per cent and Treasurer Jim Chalmers explained the changes negative gearing and capital gains taxcapital city property values were static.
But in Sydney, overall values fell 0.9 per cent to a 2.1 per cent low over the past three months. The decline was driven by housing, with values down 1.1 percent and down 2.5 percent year-to-date. Sydney’s median house value passed the $1.6 million mark in February. It is now down to $1.58 million.
In Melbourne, total house values fell 0.8 per cent to a 2.3 per cent low for the quarter. Again, home values fell more, down 1 percent to an average of $958,000 compared to a 0.4 percent drop in unit values.
