The Australian property market has been in a state of flux for much of 2022, with house prices across the country dropping by a considerable amount. According to the data released by property analysis firm PropTrack, the worst performing capital city saw a 6 per cent drop in house prices year-on-year.
This has been a particularly tough year for anyone with a property in a major city, with sluggish and minimal growth, or in some cases, an outright decrease in value.
The cause of this slump in house prices can be attributed to a number of factors, including the economic downturn caused by the COVID-19 pandemic, as well as the restrictions imposed by governments in order to contain the virus.
This has led to a decrease in consumer confidence, which has caused people to be more cautious when it comes to major purchases such as buying a property. The resulting decrease in demand has led to a decrease in house prices.
The Home Price Index from PropTrack recently revealed that homeowners in Sydney and Melbourne were not faring so well. Surprisingly, though, one capital city had an exceptional year and is now reaching its peak.
Over the past year, the allure of Sydney real estate has decreased, evidenced by a 6.44 percent decline in prices. The median house and unit price have fallen below the $1 million mark, now standing at $992,000.
Victoria’s capital has dropped significantly by 4.49%, but when compared to its peak last year its decline is even more drastic at 5.3%. Across the board, capital cities on average have decreased by 3%.
Adelaide has seen the highest growth among all Australian capital cities over the past month, which is reflected in its median home or unit value of $648,000, according to PropTrack. All other capital cities experienced a slight decline in growth, except Adelaide.
