Melbourne house prices book worst quarter in six years

Melbourne’s housing market has recorded its worst quarterly result in more than six years, as national property values dip.

Melbourne has taken the mantle of the weakest housing market from Sydney, according to CoreLogic head of research Tim Lawless.

Melbourne’s housing market has recorded its worst quarterly result in more than six years with prices falling 1.2 per cent for the three months to the end of May, helping to drag national housing values down 0.3 per cent for the period, according to researcher CoreLogic.

Melbourne’s housing prices dropped 0.5 per cent for the month outstripping Sydney’s 0.2 per cent fall in May.

Hobart and a number of regional areas led by Geelong and southeast Tasmania helped arrest the national decline, turning in healthy price growth.

CoreLogic labelled the housing market downturn as “more entrenched”.

“May marked the eighth consecutive month-on-month fall since the national

market peaked in September last year, taking the cumulative fall in dwelling values to 1.1 per cent through to the end of May 2018,” the research group said.

Melbourne has taken the mantle of the weakest housing market from Sydney, according to CoreLogic head of research Tim Lawless.

“There is plenty of evidence to suggest Melbourne’s downturn has picked up pace,” Mr Lawless said noting auction clearance rates had been weak at around 60 per cent.

However, a major correction was not expected.

“I would be surprised if it fell more than 7-8 per cent peak to trough,” Mr Lawless said of the city’s values.

Melbourne property values have fallen 1.6 per cent since the peak of last November, he noted.

Elsewhere, Sydney’s housing market fell 0.2 per cent for the month and 0.9 per cent for the quarter taking the annual fall to 4.2 per cent. Brisbane’s housing market rose 0.2 per cent for the month and was up 0.9 per cent for the year, Adelaide values rose 0.5 per cent for May and were up 0.6 per cent for the 12 months, while Perth saw a 0.1 per cent drop for May with prices down 1.8 per cent for the year.

Hobart continued to defy the weaker conditions, up 0.8 per cent for the month and 12.7 per cent for the year.

The most expensive end of the housing market continued to be weak.

Around the country, the top quarter of the market, where values were down 1.3 per cent for the year, was the only segment to show a fall.

The most affordable 25 per cent of the housing market saw values rise by 1 per cent and the broader middle market posted a 2.3 per cent increase in housing values over the year.