CoreLogic added a new output to its current suite of property market reports; Mapping the Market Report. The report is a geographical compilation of housing market vital facts and figures which highlight the deterioration in affordable housing over the past five years, particularly within Sydney and Melbourne.

Commenting on the report, CoreLogic head of research Tim Lawless said, “While headline trends are important, the geographical context of the housing market provides an equally relevant perspective on the performance of the housing market and the spatial distribution of housing values.”

Late in 2017 the rate of value growth started to slow, with the slowdown most pronounced across higher value housing stock.  This may result in some reduction in suburbs with a median value above $1 million over the coming year.

Mr Lawless said, “As dwelling values have surged 64% higher across Sydney over the past five years and by 56% in Melbourne, a significant pricing premium has developed relative to other capital cities and regional markets. "

" The difference in housing costs becomes even more apparent when viewing the suburb-by-suburb results on the interactive mapping the market web site. “ 

A key finding from the analysis by CoreLogic research analyst Cameron Kusher, indicates that outside of Sydney and Melbourne, housing has become a little more expensive however, he noted that the magnitude of decline in more affordable housing has been much less severe.

In Sydney, more suburbs now have a median house value in excess of $1 million than below, while in Melbourne, there are more suburbs with a median house value below $750,000 than those with median above $1 million.

Key Findings:

  • Outside of Sydney and Melbourne housing market conditions have generally seen much lower rates of capital gain that has provided a more affordable playing field for home buyers.
  • In Sydney, more suburbs now have a median house value in excess of $1 million than below.
  • In Melbourne, only slightly more likely to find a suburbs with a median house value below $750,000 than you are to find one with a median above $1 million.
  • Housing values vary substantially across the metro areas of the capital cities; even markets like Sydney show pockets where housing values are remarkably lower relative to the city wide median.
  • Late in 2017 the rate of value growth started to slow, with the slowdown most pronounced across higher value housing stock.  This may result in some reduction in suburbs with a median above $1 million over the coming year.
  • Around the cities:

Sydney 

Houses
In December 2012 just 3.0% of Sydney suburbs had a median house value in excess of $2 million, by December 2017 the share of suburbs with a value above $2 million had increased to 18.7%.
Units
At the end of 2017 just 3.1% of suburbs had a median unit value below $400,000 compared to a much greater 36.8% of suburbs five years earlier. 

Melbourne

Houses
The share of suburbs with a median house value in excess of $1 million in Melbourne has jumped from 8.8% in December 2012 to 37.7% at the end of 2017.
Units
The share of Melbourne suburbs with a median unit value of between $750,000 and $1 million has increased to 9.8% at the end of 2017 compared to just 0.6% at the end of 2012.

Brisbane

Houses
37.6% of Brisbane suburbs had a median house value of less than $400,000 in December 2012 with the proportion falling to 22.1% at the end of 2017.
Units
At the end of 2017, 64.3% of Brisbane suburbs had a median unit value of less than $400,000 compared to a much higher 81.8% five years earlier.

Adelaide

Houses
77.0% of Adelaide suburbs had a median house value of more than $400,000 at the end of 2017 compared to just 58.2% of suburbs five years earlier.
Units
82.2% of suburbs have a median unit value of less than $400,000 compared to 94.1% of suburbs having a median unit value below $400,000 in December 2012.

Perth

Houses 
Five years ago, 8.1% of suburbs had a median house value of at least $1 million compared to 9.8% of suburbs currently. 
Units
The supply of lower valued units has shown little change over the past five years with 53.7% of suburbs currently having a median unit value of less than $500,000 compared to 55.7% in December 2012.

Hobart

Houses
The proportion of suburbs with a median house value below $400,000 has fallen from 70.0% in December 2012 to 40.0% in December 2017.  
Units
92.9% of suburbs had a median unit value below $400,000 five years ago compared to 82.9% of suburbs in December 2017.

Darwin

Houses
9.1% of the city’s suburbs have a median house value in excess of $1 million compared to 5.5% of suburbs five years ago.  
Units
73.7% of suburbs have a median unit value under $400,000 currently compared to a lower 54.8% five years ago which reflects the weak unit market conditions over recent years.

Canberra

Houses
11.8% of suburbs have a current median house value of more than $1 million compared to 7.5% of suburbs five years ago.  
Units
27.3% of suburbs currently have a median unit value which is lower than $400,000 compared to 51.1% five years ago.