The Domain House Price Report for December 2018 has provided a list of the suburbs which had previously seen median home prices above $1 million dollars, which can no longer claim as such.
In early 2018, the number of million-dollar suburbs was on the increase – last February saw 13 new suburbs cross this immense threshold, bringing the total count to 143 such suburbs. However, recent data shows that as of December 2018, 16 suburbs have fallen from the illustrious list.
The full list of these suburbs, their new median prices and total percentage decrease across the year, are as follows:
While property owners in this region will be unhappy with this news, Director of Nelson Alexander Flemington, Paul Harrison, pointed out to Domain that this is having, and will continue to have, a positive impact on the Melbourne and Australian markets at large.
Labelling these price dips as a “correction,” Mr Harrison said that buyer interest had piqued in January of 2019 as a result of these lower prices. “It was like everyone decided to forget 2018 and wait until 2019.”
While Melbourne’s prices drop and buyer interest flicks upwards, it is a very different story among the nation’s smaller markets. Perth is seeing surges in home value and sales activity throughout many regions. Meanwhile, Tasmania is seeing a slowdown of the real estate surge it enjoyed throughout late 2018, with contention as to the cause. Common to all of these stories is an upwards slant, albeit one that is slowing for some and just beginning for others.
All momentum could soon be subject to a strong disruption, however, with the final report of the banking royal commission to be released later today. The recommendations of the report on banking lending practices could determine much of 2019’s ebbs and flows.