While parts of Australia and New Zealand have seen rising values, a growing number of suburbs are now experiencing declines as high interest rates, affordability pressures, and cautious buyer behaviour take hold.
In Australia, CoreLogic’s September Housing Chart Pack highlights that almost 30% of the 3,655 suburbs analysed saw property values drop over the three months to August 2024.
Melbourne led the decline, with 79.1% of its suburbs recording value falls. The downturn was particularly steep in affluent regions like the Mornington Peninsula, where all suburbs saw a drop in value.
Meanwhile, the property market in New Zealand shows a similar trend.CoreLogic NZ’s Mapping the Market data reveals that while 50% of suburbs experienced “meaningful” value increases over the past year, the more recent quarterly data points to a sharper downturn.
CoreLogic NZ Chief Property Economist Kelvin Davidson noted that since June, 71% of the 951 suburbs analysed saw declines, with Auckland suburbs such as East Tamaki and Northpark witnessing drops of over 6%.
While lower mortgage rates should stimulate economic activity and gradually boost home values, there remains a risk of a ‘dead cat bounce’ where premature cuts in rates could lead to further tightening if inflation remains persistently high,” said Church.
Across Australia, the downturn extended to over half of the suburbs in Hobart (54.3%), Darwin (51.2%), and Canberra (51.6%), while all Perth suburbs recorded value increases
In contrast, the New Zealand market saw double-digit gains in only eight suburbs over the past year, including Cobden (22.6%) and Blaketown (15.9%) in Grey District, which were largely at the more affordable end of the market.
