Australian capital city home values fall 1.4% in October, seventh straight monthly drop
Cotality data shows capital city home values fell 1.4% in October and 8.1% since March, with Brisbane and Perth leading, as four rate hikes weigh on demand.
What you need to know
Australian capital city home values fell 1.4% in October, the seventh consecutive monthly decline, leaving values down 8.1% since March, The Guardian reported, citing Cotality data. Brisbane and Perth led the falls as four interest rate hikes this year weighed on demand, with a fifth widely expected at the Reserve Bank's Tuesday decision.
- Combined capital city home values fell 1.4% in October, the seventh straight monthly decline.
- Capital city values are down 8.1% since March, according to Cotality.
- Brisbane and Perth led October's declines, with nearly every suburb in Brisbane, Perth and Adelaide falling over three months.
- Four rate hikes this year have weighed on demand; a fifth is widely expected at the Reserve Bank's Tuesday decision.
- Morgan Stanley forecasts peak-to-trough falls of up to 15%.
Downturn spreads to mid-sized capitals
Australian capital city home values fell 1.4% in October, the seventh consecutive monthly decline, The Guardian reported, citing Cotality data. Values across the capitals are now down 8.1% since March.
Cotality research director Tim Lawless said the downturn was broad-based and the centre had shifted from Sydney and Melbourne toward mid-sized capitals. He said virtually every suburb across Brisbane, Perth and Adelaide recorded a drop over the past three months.
Rate rises and forecasts
The market has been weighed down by four interest rate hikes this year, with a fifth widely expected when the Reserve Bank announces its decision on Tuesday. Lawless cited high interest rates as the most significant downside influence, alongside affordability challenges and reduced investor demand following the government's tax changes.
Most economists expect double-digit falls, with Morgan Stanley forecasting peak-to-trough drops of up to 15%. Despite the weakness, The Guardian reported that most homeowners remain on sizeable gains after a decade of strong growth.
How much have Australian capital city home values fallen since March?
Capital city home values are down 8.1% since March, according to Cotality data reported by The Guardian, after a 1.4% fall in October marked the seventh consecutive monthly decline.
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