The figures that show Sydney’s rapid house price decline

All of Sydney is experiencing a rapid decline in property prices from the 2017 peak with almost $450,000 shaved from the median value of one region in just two years. SEE WHICH AREAS HAVE DROPPED THE MOST.

Almost every region of Sydney has suffered a double digit decline in property prices as the housing market continues diving.

CoreLogic data shows house and unit dwelling values have fallen 12.3 per cent from the peak in July 2017 with Ryde, Sutherland and the inner west suffering the biggest declines.

In less than two years the median value of property in Ryde fell by 18.5 per cent from almost $1,600,000 to $1,143,349 while the Sutherland area dipped 14.9 per cent from $1,142,278 to $952,307 during the same time.

Source: CoreLogic

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Double digit declines in median values have been felt across the city and surrounding suburbs; Baulkham Hills and the Hawkesbury region fell 14.7 per cent, Parramatta fell 13.2 per cent and the inner west and inner south west both dropped 14.8 per cent from the peak.

Despite the fall, CoreLogic research analyst Cameron Kusher said the data “must be put in context” with Sydney values up a whopping 76 per cent overall in the past 10 years.

“Although Ryde has recorded the greatest falls to-date, values have risen by 65.2 per cent over the past decade which is actually the weakest overall growth of any Sydney region over that period,” Mr Kusher said.

The median value in Blacktown has fallen 13.2 per cent since its June 2017 peak. Picture: Joel Carrett

Falling … every region in Sydney is suffering a property downturn.

“The issues seem to be more linked to the massive supply of new properties (particularly units) over recent years.”

The Northern Beaches, outer southwest, outer west and Blue Mountains all dropped significantly but are yet to experience a double figure fall from the peak.

The latter regions are two of the most affordable in Sydney with strong increases of 78.3 per cent and 83.8 per cent in the past decade.

“We have seen in this downturn to-date that more affordable markets have held up better than the more expensive regions of the city,” Mr Kusher said.

The current rapid downturn can be interpreted, in part, as a stabilisation of 2017’s swollen property market.

“It is difficult to believe that you can have such a strong run-up in dwelling values without some form of correction,” Mr Kusher explained.

CoreLogic research analyst Cameron Kusher.

Values on the Northern Beaches are yet to dip into double figures. Picture: Jordan Shields

“Housing is always about timing. When a market turns, the value of your property falls and you feel less wealthy.

“However, if you have owned your property for 10 plus years (and haven’t leveraged into other assets or properties) the impact is less than if you have bought right near or past the peak,” he said.

While homeowners who bought before the peak are reminded they are typically still ahead by hundreds of thousands of dollars, CoreLogic is forecasting the slump to continue.

“It is the pace at which values have fallen over the past 12 months and the fact that falls have been accelerating that is most alarming,” Mr Kusher said.

“Our forecast is for values in Sydney to fall between 18% and 20% from their peak, so the expectation is that values will continue to fall this year.”