Discover the Hidden Gems: 6 Suburbs Where House Prices Have Dipped Since 2019!

Domain has highlighted six suburbs that are resisting the recent surge in housing prices, showcasing areas where property values remain stable or are growing at a slower pace, offering potential opportunities for buyers amidst a fluctuating market.

P24 News Media

November 26, 2024

1 minute

Discover the Hidden Gems: 6 Suburbs Where House Prices Have Dipped Since 2019!

Australia

Despite the significant surge in property prices across Australia since 2019, six suburbs have notably bucked the trend, with median house values currently lower than they were five years prior, according to a report by Domain.

These areas, located in Victoria, Western Australia, and the Northern Territory, serve as rare cases of declining property values amidst an otherwise thriving market.

Nicola Powell, the chief of research and economics at Domain, commented on the situation, noting, “This phenomenon illustrates the unpredictable nature of property prices that we have witnessed over the past five years. For first-time homebuyers, today's landscape is challenging; however, decreasing prices also have adverse effects on sellers, creating financial difficulties for certain households.”

In Melbourne, two suburbs, North Melbourne and Box Hill, have demonstrated noticeable price declines. Specifically, North Melbourne has experienced a 9% drop in its median house price over the past five years, now sitting at $1.13 million. Meanwhile, Box Hill has observed a 7.4% decrease, bringing its median to $1.28 million.

Charles Bongiovanni from Belle Property highlighted that the increase in supply, largely due to landlords divesting in response to tax reforms, has contributed to the easing of North Melbourne’s market. “Recent transactions have shown that properties are now selling slightly below their purchase prices,” said Bongiovanni, indicating a shift in market dynamics.

Similarly, Box Hill's price movements have been impacted by a reduction in investor interest and a transition from high-density to low-density housing developments, according to Calvin Chan of CHN Real Estate. “Although Box Hill continues to be a sought-after location, recent tax changes have had an effect on property prices,” Chan explained.

In the Northern Territory, Gillen, a suburb of Alice Springs, has seen its median property price decrease by 0.9% over five years, now valued at $440,000. The area has struggled with high crime rates, which have deterred both residents and investors, noted Gail Tuxworth from LJ Hooker. “We remain hopeful that forthcoming legislation could enhance conditions and restore confidence in the market,” she added.

Turning to Western Australia, Geraldton has witnessed a 4.7% drop in property prices over the past five years; however, the last year has seen a remarkable rebound with an 11.6% increase. Seth Jones from Professionals Geraldton attributes this positive shift to rising construction costs coupled with an expanding market. “We’re currently experiencing a robust growth phase and do not foresee any further declines,” Jones stated optimistically.

While these six suburbs illustrate distinct cases of price decline, they highlight the unique local conditions influencing property values. For the majority of Australians, the challenge of affordability continues to persist as the overall market maintains its upward trend.