Sydney, Melbourne house prices on downswing along with construction dwindling below expectations!


January data for Sydney and Melbourne house price revealed continuation of the fall in prices (as per figures provided from CoreLogic). Particularly, there has been a 0.9 per cent fall in Sydney while Melbourne house prices were still slightly better off with just a 0.2 per cent fall. The Sydney scenario now contrasts with the highest level witnessed in July 2017. All in all, Sydney’s annual price growth to the end of January was about 1.3 per cent while Melbourne’s annual return was 8 per cent. It is being reasoned out that tighter rules on investment lending are leading to the downswing in house prices in Sydney. Leaving the capital cities aside, growth seems to be picking up in regional markets.

In conjunction to these falls, volatility in high-rise construction was witnessed. Particularly, Australian Bureau of Statistics (ABS) revealed lower than expected new building approvals. Dwelling approvals plunged by 20 per cent in December in seasonally adjusted terms, owing to fall in private dwellings excluding houses. In trend terms, number of dwellings approved fell 1.7 per cent in December 2017, continuing the fall for three months, while approvals for private sector houses fell 0.2 per cent in December.

Dwelling approvals decreased in December in the Australian Capital Territory (35.0 per cent), the Northern Territory (12.9 per cent), New South Wales (5.6 per cent), South Australia (2.4 per cent), Western Australia (1.3 per cent) and Queensland (0.8 per cent), as opposed to Tasmania and Victoria that witnessed a rise of 3.1 per cent and 2.5 per cent, respectively, in trend terms.

sm generic.png

Dwelling units approved and Private Sector Houses Approved (Source: ABS)

The dwelling approvals seem to be trending in contrast to what was seen in October and November last year.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply