Home Insights The suburbs where homes are now cheaper than before the boom

The suburbs where homes are now cheaper than before the boom

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Rapid rate hikes by the Reserve Bank are putting downward pressure on house price growth as some suburbs are below pre-pandemic levels.

The majority of Australia’s housing market has been spurred by record low interest rates, changing buyer lifestyle preferences, interstate migration trends and a shortage of real estate for sale after the Covid-19 outbreak. was booming.

However, aggressive cash rate hikes by the Reserve Bank are putting downward pressure on growth. 51 suburbs in Sydney and Melbourne now have cheaper housing than before the boom.

look PropTrack Home Price Index August data shows that nationwide house price growth continues to decline from its peak last October.

Annual price growth is currently just 5%, the lowest since early 2020.

Sydney and Melbourne have many suburbs where house prices are now lower than they were before the pandemic.Photo: Getty


Greater Sydney was the only region to record negative annual house price growth, with house prices now down 0.87% from the previous year.

A similar trend was observed in Melbourne, where house prices remained flat for the year (0% growth).

To get an idea of ​​which neighborhoods are most affected by the current price drop, we looked at suburbs where homes and units are currently selling for less than they did pre-pandemic.

An interesting finding was that areas with higher house price declines tended to be more expensive than other areas.

Suburbs with lower home prices than pre-pandemic

Source: Prop Truck. The median sale price reflects a rolling 12-month median from August 21st to July 22nd and his April 19th to March 2020.
Suburbs state Median – March 2020 Median – July 2022 Change
Rhodes New South Wales $2,800,000 $2,200,000 -21.43%
Balmain East New South Wales $2,775,000 $2,512,500 -9.46%
caulfield east Big $1,642,500 $1,497,500 -8.83%
Woll stone craft New South Wales $2,960,000 $2,705,000 -8.61%
clayton Big $1,158,000 $1,100,500 -4.97%
East Melbourne Big $3,250,000 $3,155,000 -2.92%
Cranborne South Big $1,050,000 $1,037,500 -1.19%

Wollstonecraft homes in Rhodes, Balmain East and Sydney all have lower median sales prices through July 2022 compared to March 2020.

The Melbourne suburbs of Caulfield East, Clayton and East Melbourne also saw home prices fall to pre-pandemic levels.

These suburbs are one of the areas where prices are much higher than the median of the capital, supporting the notion that as mortgage repayments rise, demand for more upscale locations is waning.

Overall, there were seven suburbs with lower median home prices than before the boom.

The number of suburbs where unit prices are lower than pre-pandemic is significantly higher and more diverse in terms of cost and location.

This may be because unit price growth has been slower than housing since the pandemic began.

Suburbs with lower unit prices than pre-pandemic

Source: Prop Truck. The median sale price reflects a rolling 12-month median from August 21st to July 22nd and his April 19th to March 2020.
Suburbs state Median – March 2020 Median – July 2022 Change
Beecroft New South Wales $1,400,000 $840,000 -40.00%
Albert Park Big $1,100,000 $822,500 -25.23%
Balmain East New South Wales $1,480,000 $1,127,500 -23.82%
Haymarket New South Wales $1,179,000 $920,000 -21.97%
beaconsfield New South Wales $945,000 $739,000 -21.80%
eastwood New South Wales $900,000 $706,250 -21.53%
kingsbury Big $530,000 $435,000 -17.92%
Aberfeldy Big $975,000 $807,500 -17.18%
canterbury Big $1,171,000 $971,000 -17.08%
little bay New South Wales $950,000 $821,000 -13.58%
Dover Heights New South Wales $1,407,000 $1,230,500 -12.54%
maid stone Big $600,000 $525,000 -12.50%
Balaclava Big $604,000 $532,500 -11.84%
auburn New South Wales $572,800 $510,000 -10.96%
Holroyd New South Wales $622,500 $565,318 -9.19%
Bellara New South Wales $458,500 $417,000 -9.05%
bell rose New South Wales $600,000 $552,500 -7.92%
Belmore New South Wales $598,000 $554,000 -7.36%
Harris Park New South Wales $473,750 $439,000 -7.34%
Balwyn Big $980,000 $917,500 -6.38%
box hill Big $570,500 $536,250 -6.00%
Glenn Huntley Big $580,000 $546,000 -5.86%
Matraville New South Wales $862,000 $820,000 -4.87%
melbourne Big $530,000 $505,000 -4.72%
Dallas Big $430,000 $410,000 -4.65%
Mirror’s Point New South Wales $1,962,500 $1,872,500 -4.59%
Hawthorne East Big $620,000 $595,000 -4.03%
Docklands Big $605,888 $582,000 -3.94%
heidelberg Big $664,000 $640,000 -3.61%
armadale Big $660,000 $636,250 -3.60%
Doncaster Big $615,000 $596,000 -3.09%
Kingsville Big $425,000 $414,000 -2.59%
Malvern Big $720,000 $704,999 -2.08%
Blackburn South Big $917,500 $900,000 -1.91%
Kew East Big $957,500 $942,500 -1.57%
bentley Big $650,000 $642,500 -1.15%
Balwyn North Big $1,152,500 $1,140,000 -1.08%
Essendon North Big $395,000 $391,000 -1.01%
Gordon New South Wales $930,000 $923,000 -0.75%
Epping New South Wales $785,000 $780,000 -0.64%
Brooke West Big $499,000 $497,000 -0.40%
Jordan Springs New South Wales $526,000 $524,000 -0.38%
Mays Hill New South Wales $558,000 $556,500 -0.27%
enfield New South Wales $646,500 $645,000 -0.23%
Marylands West New South Wales $467,500 $466,500 -0.21%

Unit prices at Beecroft, Haymarket and Eastwood in Sydney are over 20% lower than in March 2020.

Units in Kingsbury, Aberfeldy and Canterbury in Melbourne were down 17% to 18%.

Buyers in the western Sydney suburbs of Auburn, Bellara and Harris Park are 7% to 11% cheaper than they were two years ago. These are all suburbs with unit prices below the state median.

It’s a similar story for anyone looking to buy a unit in Maidstone, Box Hill or Dallas, Melbourne.

In-depth insights from PropTrack’s team of experts:

Home prices are expected to continue to fall as interest rates continue to rise, the ability of prospective buyers to borrow decreases, and mortgage repayments increase.

But how much the market will ultimately fall will depend on how quickly and how far the RBA raises rates to keep inflation in check.

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