Suburbs where house prices fell most in 2022

CoreLogic Australia research director Eliza Owen said suburbs have not been uniformly affected by market headwinds, noting that pricier markets tended to see larger declines.

“More expensive housing markets tend to be associated with higher debt-to-income ratios, so Sydney in particular may have been more sensitive to the rising interest rate environment,” she said.

Inner suburbs like Redfern and Surry Hills have seen some of the largest home value declines in the country.Recognition:Brook Mitchell

Sydney’s inner city suburbs have tended to be more volatile due to the higher concentration of investment activity. More speculative buying could lead to more extreme changes in value, Owen noted, adding that many of the areas rallied strongly during the boom.

Housing values in Sydney as a whole are 11.4 per cent below their peak, while values in Melbourne and Brisbane are down 7.1 per cent and 8.1 per cent respectively.

Belle Property Dee Why sales representative Joshua Perry said Narrabeen’s median home value has been skewed downward by fewer high-end sales. Prices were still down 15 to 20 percent, but that was after a 40 percent uptick in the boom. He attributed the declines to rising interest rates, noting that most buyers had not been deterred by the region’s floods earlier this year.

“After such a steep climb, a correction is natural,” he said. “It’s a little bit more difficult this year … but when properties are cheap and well marketed, we still see them sold in a short period of time.”

Narrabeen was also impacted by slowing demand from out-of-area buyers, which helped fuel rapid growth in 2020 and 2021. There was still good interest from north shore buyers, Perry said, but demand from residents of the eastern suburbs was almost non-existent. existent.

In Melbourne, Ian Mason, director of Mason White McDougall in Hurstbridge, said there was more demand for single-family homes than for entry-level properties, but didn’t think values were down 17 percent.

“In the four-bedroom family home [market]we’re still seeing a lot of demand,” he said.

“What we’ve seen is probably the lower end of the market, the early homebuyers who are small and need work – they’ve definitely come back in price.”

Entry-level real estate is in greater supply, Mason said, noting that concerns about rising interest rates may prompt first-time homebuyers to look for cheaper areas nearby.

It’s a contrast to the lockdown days, when shoppers were moving from the inner suburbs for a tree-changing feel, with some buying unseen.

In Canberra, Torrens and O’Connor fell about 12 percent, while Hobart’s Mount Stuart saw the largest drop of 13.6 percent.

The declines were more muted in Perth, where values fell 6.2 per cent in West Perth and 3.8 per cent in Tuart Hill. Not one suburb in Adelaide saw prices fall.

Outside of the main cities, popular lake and tree-changing suburbs that were booming at the start of the pandemic saw the biggest price drops.

Suburbs in NSW’s Richmond-Tweed region – hit by both rising rates and damaging flooding earlier this year – have seen sizeable declines. Levels fell 20.5 per cent in Byron Bay and more than 18 per cent in Suffolk Park, Lismore and Mullumbimby.