CoreLogic research analyst Cameron Kusher said that his analysis showed over the 2017-18 financial year, annual value growth fell from 10.2 per cent over the previous financial year to a decline of -0.8 per cent this year.  

The largest fall in values is occurring for Sydney and Melbourne’s most expensive properties.

Over the 2017-18 financial year, 29.6 per cent of houses and 8.0 per cent of units sold in Melbourne sold for at least $1 million.

The share of house sales at this price was higher than the last financial year (27.6 per cent) while for units it was slightly lower (8.1 per cent).

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The share of sales of at least $1 million in Melbourne peaked in March 2018 for houses at 30.6 per cent and peaked in January 2018 at 8.6 per cent for units.

Traci Stella, senior sales consultant at Jellis Craig Manningham, has noticed homes have stayed on the market for longer recently.

“We used to sell within 30 days but now the days on market are blowing out, and we are seeing half the volume of buyers coming through,” Ms Stella said.

“For the first time in a long time we are having more vendor meetings, talking to them about what’s selling and not selling, and what they are competing with.

“Vendors have had it so good for such a long time and they are taking a while to adjust.”

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Ms Stella also said she isn’t seeing as many investors due to the royal commission which has made a significant difference to the market.

“My niece was pre approved last year and her pre approval has now been reduced by about $200,000.

“It’s harder for buyers to get the lending capacity they were previously getting."

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At its peak in March 2018, 50.4 per cent of houses sold over the past year in Sydney transacted for at least $1 million with the figure since falling to 48.8 per cent in June 2018.

The 48.8 per cent share in June 2018 was slightly higher than the 48.6 per cent a year earlier but clearly now trending lower.

Over the 12 months to June 2018, 21.2 per cent of all unit sales were at least $1 million which was both down from a year ago (21.8 per cent) and lower than the October 2017 peak (22.5 per cent).

Mr Kusher said “With dwelling values declining and much more rapid declines across the most expensive housing stock it is reasonable to expect the share of $1 million sales to trend lower over the coming year.

“This will largely be driven by weakening in Sydney and Melbourne. Smaller capital cities are also likely to continue to see the share of $1 million sales climb further too,” he said.

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