Changes in the prestige property market
After seeing the most rapid growth during the housing boom, new data shows that values at the top end of the market are cooling faster - albeit incrementally - than the more affordable property.
The latest research from Corelogic shows that, nationally, the most expensive 25 per cent of properties fell 1.1 per cent in value during the March quarter. This was compared to a 0.7 per cent rise in the cheapest properties, and a 0.3 per cent rise in the middle 50 per cent of homes.
In Sydney, results are mixed with the upper end of many markets remaining steady. Whilst Corelogic recorded an overall dip in values across the city over the past year, Belle Property's results paint a different picture and show, in the majority of cases, that the most expensive homes are holding their value.
In Melbourne, the prestige end of the market recorded a rise of 1.6 per cent. However, this was less than the 6.2 per cent rise seen in the mid-market. Buyers have still been snapping up the cheapest homes in Melbourne, leading to 11.3 per cent growth.
For Brisbane, annual growth has been moderate. However, the middle valued suburbs recorded the strongest growth at 1.1 per cent, followed by fairly similar growth rates across the most affordable suburbs at 0.9 per cent. The most expensive suburbs recorded 0.8 per cent growth.
In Adelaide, each sector of the market recorded growth over the past year with the greatest increase across the mid-market with a 1.5 per cent increase. The affordable and expensive segments each recorded growth of 0.8 per cent.