Property prices in Australia record annual decline

The average property price across Australia has fallen for the first time in six years, new figures show.

According to the latest CoreLogic data, property prices across Australia’s fell by -0.4 per cent in the year to May 2018. It is the first time that prices in the country have fallen on an annual basis since November 2012.

The price decline is particularly severe in Australia’s capital cities – particularly Sydney and Darwin. Prices in these two cities fell by -4.2 per cent and -7.9 per cent respectively in this period.

However, Melbourne is currently Australia’s worst performing capital property market. In the last quarter, prices in Victoria’s capital fell by -1.2 per cent, while they declined by -0.5 per cent in May alone. In the same period, Sydney property prices fell by -0.9 per cent in the quarter and -0.2 per cent in May.

CoreLogic’s head of research, Tim Lawless, believes tougher lending standards, plus weaker conditions in Sydney and Melbourne are behind the drop.

“Sydney and Melbourne comprise approximately 60 per cent of Australia’s housing market by value, and 40 per cent by number,” he said. “So the performance of these two cities has a larger effect on the headline market performance.”

Tasmania’s capital, Hobart, remains, by far, the best-performing housing market — gaining 0.8 per cent in May, and 12.7 per cent over the past year.

CoreLogic wrote, in its report, that Hobart’s “impressive run of capital gains is showing little signs of slowing down.”

With property price growth across many parts of Australia slowing, now is a good time for people getting ready to move to the country to buy a property. And the currency exchange right, and potential buyers could be looking at even more favourable conditions.

When exchanging large lump sums for emigration purposes, only a small change in the market can have a significant impact on the amount of money you could be potentially starting your new life with.

For example, three months ago, back in early March, £1 would have purchased you AUS$1.777. However, by the end of that month the rate had reached £1=AUS$1.849. On an exchange of a substantial amount, say from the sale of your UK property prior to emigrating, such a fall has a massive impact on the amount of money you’ll have to start your new life. For example, if exchanging £150,000 the difference in Australian Dollars received in just a few weeks would have been AUS$10,800.  However, since the end of March the exchange rate has been less favourable, and by yesterday had dropped to £1=AUS$1.751. Exchanging at the right time is crucial.

Currency specialists Halo Financial understands why the exchange rates are moving and just what impact this has on your currency transaction. What’s more, they can also explain how to make your money go further and give you a range options on exactly when you wish to exchange, and how much you should exchange at a time.

To find out how you can make sure you can get the best exchange rate possible, and take advantage of positive fluctuations in the markets, visit www.halofinancial.com

Average Australian house prices by state or territory capital city

Sydney – AUS$871,454

Melbourne – AUS$717,020

Canberra – AUS$592,954

Brisbane – AUS$494,038

Perth – AUS$463,319

Adelaide – AUS$437,234

Darwin – AUS$434,134

Hobart – AUS$430,429

Article published 6th June 2018