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A recent report has suggested that Australia’s finest properties may rebound faster than the market’s other sectors.
According to CoreLogic research analyst Cameron Kusher, “It is still early days but with the housing market expected to trough in late 2019, the premium housing sector may find a floor first and start to show some level of recovery before the other segments.”
“This is a trend that has played out before whereby premium housing values fall the fastest initially, but also sees the falls cease earlier than other market segments.”
The CoreLogic Stratified Hedonic Index measured the six month annualised change in dwelling values by diving the housing market into three segments: the 25% of the most affordable dwellings, the 50% of dwellings in the middle of the market, and the 25% of the most expensive dwellings.
Nationally, from the market peak to the end of May 2019, the most affordable quarter has seen values fall by -1.4%, the largest shift since September of 2018.
The middle of the market has seen values fall by -6.6%, which is slightly down on the previous corresponding figure.
The top quarter has fallen by a much more significant -11.6%, however the data records two consecutive months in which the falls have slowed, as well as showing the smallest annual decline since December 2018.
Among the combined capital cities, the top quartile is -12.4% lower, but also the smallest figure since December 2018.
While values are continuing to fall, the monthly rate is showing sustained signs of slowing.
