‘Desirable’ property’s dramatic 13 per cent price plunge proof of downturn

When this “classic family home” sold in October 2016, it fetched $1.51m. Less than two years later, that price was slashed dramatically.

If you’re looking for proof of Australia’s tumbling house prices, look no further than 97 North Road in Ryde, NSW.

When the “classic” three-bedroom family home, located just 12km from Sydney’s CBD, sold in October 2016, it raked in a healthy $1,510,000.

But just 22 months later, when it sold in August 2018, it fetched a mere $1,308,000.

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That’s a staggering $202,000 wiped off the property’s value in less than two years, representing a 13 per cent drop.

Agents from McGrath Epping, the firm that sold the dwelling last year, did not return calls for comment.

But that example is far from an isolated one.

Just 22km away in Beacon Hill, dramatic price drops are also occurring.

When four-bedroom 15 Crawford Place hit the market in 2017, it sold for $1,500,000, as confirmed to news.com.au by Belle Property Frenchs Forest.

The value of 97 North Road in Ryde dropped by 13 per cent in 22 months. Picture: realestate.com.au

But when it changed hands again in October 2018, the price had also fallen, by $20,000.

Property values are also falling in Victoria, with 3/242 Woodland Street in Strathmore in Melbourne’s northwest selling for a cool $790,000 in October 2017 — only to fetch just $750,000 in March 2018.

And according to some property experts, the situation could be about to get even worse.

On Wednesday, LF Economics founder Lindsay David made the sensational claim house prices in Sydney and Melbourne could fall by up to 25 per cent this year alone — and “there’s a chance they could fall by half” in the coming “property bloodbath”.

“We think there’s a chance property prices could fall by half in Sydney and Melbourne over the long run,” Mr David said.

“I wouldn’t be surprised by falls of at least 40 per cent. When all hell breaks loose you’ve only got so many buyers out there.”

Earlier this month, banking giant UBS also warned Australia’s falling house prices could be about to plummet even lower still, following the release of the latest Australian Bureau of Statistics home loan figures which revealed the number of new mortgages taken out across the country had dropped to the lowest point since the global financial crisis.

3/242 Woodland Street in Strathmore, Victoria fetched just $750,000 in March 2018, down from $790,000 in October 2017. Picture: realestate.com.au

UBS also claimed the results would be even more dire for our two biggest cities, Sydney and Melbourne, which could see prices drop almost 20 per cent — more than double the 7 per cent plunge recorded to date.

CoreLogic also recently tipped values in Sydney and Melbourne to fall by 18-20 per cent from peak to trough this year.

And in January, realestate.com.au figures revealed that while Sydney still had the country’s priciest homes with a median price of $955,000, many were also experiencing the biggest falls in Australia, with middle priced suburbs the hardest hit.

Realestate.com.au chief economist Nerida Conisbee said while the Ryde home’s price drop might seem alarming, it was an accurate reflection of current market trends.

“The median for North Ryde houses has dropped 17 per cent over the past 12 months, so this house is actually doing better than the median given it has dropped by 13 per cent, although over a slightly longer period,” she told news.com.au.

“It is very much reflective of the Sydney market at the moment — North Ryde is one of the toughest markets.

“Compare Strathfield which has increased by 9.3 per cent over the past 12 months and Queens Park which has increased by 6.1 per cent.

15 Crawford Place in Beacon Hill had $20,000 wiped off its value last year. Picture: realestate.com.au

“In fact, over the past quarter, the inner east and inner west have actually seen moderate price growth. Other areas are continuing to see declines.”

And she said if the owner of the Beacon Hill property had held off that sale any longer, they may have seen an even worse result.

“Beacon Hill has actually dropped by 6 per cent over the past 12 months, so 2018 was perhaps a good time to sell given the seller only lost $20,000,” she said.

“If they held it longer, they could have potentially lost more.

“The Sydney market is falling overall but it is definitely multispeed at a suburb level.”

According to the RBA, Australia’s housing correction has been triggered by four main factors, including a drop in foreign buyers, stricter lending practices, a surge in properties on the market and increasingly stretched household incomes.

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