Sydney and Melbourne Upper Quartile House Prices Fall 4% Over Three Months

House values fell across almost all price points in Melbourne and Sydney over recent months, with the largest declines concentrated in the upper quartile of properties. Cotality data recorded a roughly four per cent drop in the upper quartile for both cities over the three months to the end of May. 2 per cent gain in its bottom quartile while Melbourne values declined across measured segments.

35 per cent on Tuesday after three consecutive increases earlier this year. Those hikes have raised mortgage repayment costs for existing borrowers. Gerard Burg, Cotality head of research for Australia, said higher purchase prices at the top end limit demand.

“There’s a higher buy-in cost, and that limits demand at times like this,” he said. ” Westpac senior economist Matthew Hassan said the upper quartile typically moves more sharply than other segments. “It runs hotter during upward swings, and gets hit harder during corrections,” he said.

Sydney buyer’s agent Michelle May reported increased numbers of properties passed in at auction and more off-market activity. “I’m seeing a lot of properties being passed-in, some taken off the market and more off-market activity,” she said. Melbourne agent Julie DeBondt-Barker said the reduced investor presence creates an opening for first-home buyers.

“It is a really good time for first home buyers because there are fewer investors competing against them,” she said. Perth recorded an almost four per cent gain in its top quartile and more than six per cent in its bottom quartile over the same three-month period. Burg and Hassan both noted that Perth, Adelaide and Brisbane continue to rise but have less housing supply than Sydney and Melbourne.

Victoria accounted for one third of new homes built nationwide from 2020 through the end of last year. Burg said the subsequent slowdown in construction could tighten supply in Melbourne over the medium term. Hassan said the market remains in flux and that spring auction results will provide an early signal of whether price declines are broadening.