The fallout from the banking royal commission and APRA's stricter lending policies will see Sydney and Melbourne markets hit hardest, according to property analytics firm CoreLogic.

"Credit policies aren't likely to be relaxed," said CoreLogic's head of research Tim Lawless.

"Borrowers who could have borrowed money for housing finance six months ago will find it more challenging, especially if they want interest-only loans, or are buying for investment purposes."

He predicted that values will continue to fall slightly in Sydney and Melbourne, "where the strongest growth has been, and where investors have been most concentrated".

First fall since 2012

In its April report, CoreLogic found that dwelling values across the combined capitals recorded an annual decline — down 0.3 per cent — for the first time since November 2012.

Though on a monthly basis, the combined capitals had been falling for the last seven months.

The biggest contributors to this decline were Sydney and Melbourne, falling 0.4 per cent each.

On a quarterly basis, that's a 1.2 per cent decline for Sydney, and a 0.7 per cent drop for Melbourne.

Sydney's median dwelling value is $875,816 — a figure which includes both houses and apartments. But the median house price remains well above $1 million.

Melbourne's median property value is $720,433.

Brisbane was the only other capital city to record a slight fall, down by 0.1 per cent.

Valkie wrote on May 1^st, 2018 at 6:37pm:


The rest of the world is running the money printing machines overtime and lending it to stupid aussies to buy over priced property

The next thing that will happen is that all of the publicly owned assets will disappear into foreigner hands because of our massive debt obligations