The suburbs where prices have dropped by up to $960K

The Aussie property market has defied expectations over the past few years. Despite higher interest rates, many markets have experienced strong price growth. The mid-sized capitals, in particular, have had a great run. CoreLogic data shows that home values have increased by 22.6% in Perth, 15% in Adelaide and 13% in Brisbane over the 12 months to 31 October.

But there are signs that the housing market might be running out of steam. According to CoreLogic, annual growth in national home values was 6% for the year to the end of October - down from a peak of 9.7% in February. 

CoreLogic noted that even Perth, Adelaide and Brisbane appear to be losing momentum. Monthly gains in Perth, for example, were averaging more than 2% earlier in the year but values rose by just 1.4% in October. Adelaide values had the lowest monthly rise since June while Brisbane's monthly gain was the lowest since July.

We're also seeing a rise in the number of homes being advertised for sale but fewer home sales. "Capital city auction clearance rates held below the 60% mark through most of October, while private treaty metrics are showing a subtle rise in median days on market," explained CoreLogic. 

Despite all this CoreLogic said that Perth, Adelaide and Brisbane markets "remain well and truly in favour of sellers, although the balance is starting to gradually improve". On the other hand, CoreLogic described Sydney, Melbourne and Hobart as buyer's markets.

The suburbs where house values have fallen the most since their peak

Even though the property market has had a great few years, many suburbs around the country have seen median house values drop since their peak. CoreLogic compiled a list of capital city suburbs with the largest gap in house values from their peak.

In percentage terms, Darwin city house prices have experienced the biggest drop. The median value has dropped by 37.2% since its peak in June 2012 to $485,402. The fall is equivalent to about $287,000.

The Sydney beachside suburb of Bronte takes that dubious honour in dollar terms, with the median house value falling by more than $960,000 since it peaked in January 2022. That said, the median price tag is still sitting at a hefty $5.2 million.

Interestingly, the tables show that the majority of suburbs peaked in 2022. There are a few exceptions, though. In Adelaide and Perth, for example, most of the suburbs peaked this year and the drops have been modest. And in Darwin, house values appear to have peaked more than a decade ago.

It's also worth noting that all of the Melbourne suburbs to make the list are on the Mornington Peninsula. Prices boomed in the region during the pandemic as working from home became the norm and home buyers ditched the city in favour of beachside locations with a more laidback lifestyle but still within commuting distance of Melbourne. 

Greater Sydney

Greater Melbourne

Greater Brisbane

Greater Adelaide

Greater Perth

Greater Hobart

Greater Darwin

Canberra

Data source: CoreLogic. Data is at October 2024. Growth rates are based on changes in the CoreLogic Home Value index, which take into account value changes across the market. Only metrics with a minimum of 20 sales observations and a low standard error on the median valuation have been included

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