The ScoMo effect: how the worst could be for the Australian housing market – after Sydney, house prices fall by a record 17 percent
- CoreLogic data showed that national housing values fell by 0.4 percent in May
- This was the lowest rate of the monthly decline in a year and followed the election result
- Tim Lawless of CoreLogic said that the re-election of Coalition helped the housing market
- Sydney is still struggling – median house prices have fallen by 17 percent since July 2017
Prime Minister Scott Morrison's surprising election victory can have a positive effect on the Australian housing market – with the national delay the lowest in a year.
National housing values for houses and apartments fell by 0.4 percent in May, according to CoreLogic real estate data.
CoreLogics main research Tim Lawless said that the surprising re-election of a coalition government for a third consecutive period was good for a struggling housing market.
& # 39; We have seen several outcomes and announcements that are likely to have a positive effect on housing market conditions, & # 39; he said.
The unexpected election victory of Prime Minister Scott Morrison can have an effect on the Australian housing market – with the national slowdown in growth the smallest in a year (pictured is the prime minister with his wife Jenny and their daughters Abbey and Lily in the early hours of May 19)
& # 39; The outcome of the federal election has taken away the uncertainty surrounding tax reform, which should increase confidence among homeowners and potential buyers, especially investors. & # 39;
Labor lost five seats in the election last month following the pledge to scrap the negative gearing tax benefits for existing properties from January 2020 and halve the tax credit for capital gains for sellers from 50% to 25%.
However, the worst is not over yet, with the median Sydney house price plummeted by a record 17 percent or $ 180,161 since peak in July 2017, CoreLogic real estate data for May showed.
The average house price of Sydney is now $ 869,579, with prices that are 11.6 percent lower each year.
Australia's largest city is home to six of the ten worst-performing metropolitan housing markets, with Ryde values in northern Sydney at 16 percent in one year.
The inner southwest of Sydney, which is on the outskirts of Lakemba, has seen its living values fall by 15 percent, with double digits also observed in the outer southwest of the city, the eastern suburbs and the Sutherland Shire where Mr. Morrison is established. the local federal member.
In May, national property values for homes and apartments fell by 0.4 percent, while CoreLogic real estate data showed (pictured are Sydney houses in a suburb)
The average house price of Melbourne fell by 15 percent or $ 123,925 since peak in November 2017, with values for a house with a back yard that fell by 12.6 percent in a year.
The inner east of the Victorian capital is Australia's third-worst market, with housing values falling 14.1 percent in one year, followed by 12.7 percent in the far east and 12.6 percent in the inner south.
A STORY OF EIGHT CITIES
Sydney, 11.6% to $ 869,579
Melbourne, 12.6% to $ 708,523
Brisbane, with 2.3% to $ 531,047
Adelaide, an increase of 0.2% to $ 465,625
Perth, 8.7% to $ 459,823
Hobart, a 3.8% increase to $ 478,485
Darwin, 6.4% to $ 462,984
Canberra, an increase of 3.4% to $ 658,407
Source: average median house values of CoreLogic in the year until 31 May 2019
Mandurah, south of Perth, was Australia's sixth-worst suburban housing market with values that fell at an annual rate of 12 percent.
Perth is still in a difficult situation, with median house prices falling by 8.7 percent in the last year.
The equivalent values of Darwin have fallen by 6.4 percent, while Brisbane is now also slowing and median prices are falling by 2.3 percent annually.
In contrast, Hobart was the performing real estate market in Australia, with median house prices rising at an annual rate of 3.8 percent, with Canberra not far behind with 3.4 percent.
Adelaide's annual growth was virtually stable at 0.2 percent.
At the end of the election campaign, the opposition promised to equal the Liberal Party's First Home Loaning Regime, with first home buyers having to pay only a five percent deposit, as taxpayers financed the 20 percent down payment.
The Reserve Bank of Australia is generally expected to lower interest rates when it is reached tomorrow, which would raise the cash rate to a new low of 1.25 percent.
. (TagsToTranslate) Dailymail (t) news (t) scott-Morrison