CoreLogic’s daily dwelling values index shows that Melbourne and Sydney values are lagging well behind the other major capital cities:
Over the past 28 days, Melbourne dwelling values declined by 0.1%, whereas Sydney’s rose by 0.2%.
By comparison, values rose by 1.4% in Perth, 1.1% in Adelaide, and 0.6% in Brisbane over the same 28-day period.
CoreLogic’s research director, Tim Lawless, also predicted that Sydney could experience a modest price correction.
“Sydney hasn’t recorded a rate of growth over a quarter this low since the very beginning of the cycle back in February 2023”, he said.
“In six months from now, I think we’ll probably see a continuation in this loss of momentum”.
SQM Research has released listings data for September, which helps to explain why Sydney and Melbourne are lagging.
In the year to September, Melbourne (+7.2%) and Sydney (+7.9%) recorded significant increases in listings, whereas the other major capital cities experienced large declines in listings:
The following chart from Justin Fabo at Antipodean Macro plots SQM’s listings data as a time series and shows that total and new listings are tracking at relatively high levels compared to the 14-year average:
The high number of listings, combined with affordability pressures in the case of Sydney, are clearly weighing on prices.
