Despite Australia’s property market seeing massive price growth since 2019, six suburbs nationwide have defied the trend, with median house prices now lower than five years ago, Domain reported.
These suburbs, spread across Victoria, Western Australia, and the Northern Territory, offer rare examples of declining property values in an otherwise red-hot market.
“It really demonstrates the craziness we’ve seen in property prices over the last five years,” said Nicola Powell (pictured above), Domain’s chief of research and economics. “While it’s tough for first-home buyers, falling prices also negatively impact sellers, leading to financial strain for some households.”
In Melbourne, North Melbourne and Box Hill stand out for price drops. North Melbourne’s median house price fell 9% over five years to $1.13 million, while Box Hill saw a 7.4% decrease to $1.28 million.
According to Charles Bongiovanni of Belle Property, a surge in supply, driven by landlords selling due to tax changes, has softened North Melbourne’s market.
“Recent sales have seen homes sell slightly below their purchase price,” Bongiovanni said.
Box Hill’s market has been influenced by reduced investor activity and a shift from high-density to low-density developments, said Calvin Chan of CHN Real Estate.
“Box Hill remains desirable, but tax changes have impacted prices,” Chan said.
In Gillen, a suburb of Alice Springs, the median price is down 0.9% over five years to $440,000. High crime rates have driven residents and investors away, said Gail Tuxworth of LJ Hooker.
“We’re optimistic that new laws could improve conditions and boost confidence,” Tuxworth said.
Geraldton, WA, experienced a 4.7% price drop over five years, but prices surged 11.6% in the last 12 months.
Seth Jones of Professionals Geraldton attributed this to high building costs and a growing market.
“We’re in a strong growth phase and don’t expect further declines,” Jones said.
While these six suburbs offer exceptions, they underscore unique local factors shaping property values. For most Australians, affordability remains a challenge as the broader market continues its upward trajectory.
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