In the last fiscal year, the number of properties sold in Australia for more than 1 million yuan fell by 17.2%. Lending tightening and weak markets led to only 18.4% of single-family homes and 9.8% of units in state capitals sold at least $1 million in the year to June.
Sydney and Melbourne were hit by the recession, with prices falling by 14.7% and 10.8% from market peaks. CoreLogic research analyst Cameron Kusher said that house price contraction is most evident at the top end of the market. “In general, we have seen the biggest decline in the higher value of the market, and the situation in Melbourne is very obvious. I mean, the inner and inner southern regions are the most suburban suburbs in Melbourne and the city. The most expensive suburb,” Kusher said. In Sydney, as of June, the proportion of home sales that sold for more than seven digits fell to 30.2%, the lowest level since October 2014. The downturn in Melbourne has caused only 23.1% of homes to sell for more than $1 million.
In smaller and more affordable markets, such as Brisbane and Perth, the luxury market has been hit hard. Adelaide ignored the market trend, and the proportion of properties sold for more than 1 million yuan in the previous fiscal year increased to the highest level in history. But as the housing market begins to stabilize, credit is more readily available, and interest rates at historic lows are expected to fall further, the high-end market is likely to usher in a shift. Variable leverage within the market may see conservative price returns. Independent economist Andrew Wilson said that the market will be tested this month, which is the vane of the spring market. “Intermediate and low-end markets are dormant, and sellers can wait,” he said. Kusher believes that price cuts in the mid-range market will be attractive to buyers who want to improve their homes. These buyers may become strong players in the market and bring better prices to the high-end market. The couple (Simon and Emma Day) have already listed the Malvern East home in the eastern suburbs of Melbourne, and believe that this five-year-old home can be sold for more than 1 million in weekend auctions. Simon believes that now is a good time to buy and sell. “In the past 12 to 18 months, real estate prices have returned, interest rates have fallen, and people can get loans quickly, which is a good time.”