Sydney house prices falling faster than units: HTW residential

The first half of 2019 confronted a unique set of circumstances in that both a state and federal election were held, according to the latest Herron Todd White (HTW) residential report. 

This has provided a further brake on the Sydney property market, particularly in the case of the federal election with property at the forefront of the campaign given the negative gearing and capital gains tax changes proposed, the report noted.

In general, auction rates have improved on the back of vendor expectations meeting the market, the number of property transactions is down compared to 2018 and price declines have been slowing but are still down 4.3% from the start of the year to mid-May, with an 11.2% decline over the past 12 months, according to Corelogic. 

"There have been mixed results across Sydney however with different areas performing better than others," the valuation firm said. 

The tables below show the five best and five worst performing Sydney regions in regard to change in dwelling values.

Median prices in the Blue Mountains and upper northern beaches showed greater resilience over the past 12 months while Epping and southern Sydney appear to have experienced the greatest falls.

Capital city SA2 regions with greatest annual change in dwelling values, 12 months to Apr-19

A three bedroom house with original features at Katoomba has been sold for $515,000 (pictured below).

The elevated character home at 34 Freelander Avenue comprises formal lounge room, open plan kitchen, large living area, three bedrooms, sunroom and established garden.

It's close to local schools, park and bus stop.

Capital city SA2 regions with largest annual fall in dwelling values, 12 months to Apr-19

A five bedroom house at Bass Hill recently sold for $1.03 million (pictured below).

Set on a 645 square metre block, the family home at 41 Broad Street comes with multiple living areas, five bedrooms, timber kitchen and outdoor entertainment area.

Other features include security alarm system, air conditioning, video intercom, and wood fireplace.

The report suggest house prices still appear to be falling at a faster rate than units, with the Sydney median house price down 3.1% in the March quarter to $1,027,962.

This compares to the Sydney median unit price which is down 2% in the March quarter to $696,935 (source: Domain).

"A likely interest rate cut, an increased appetite for new loans by major lenders and more certainty after the elections are likely to see market conditions continuing to improve in the second half of the year, with prices beginning to stabilise," the report said.