The recently released RP Data-Rismark Home Value Index for May shows clear signs that property values have already reached its cut off point, with values for key capital cities dropping to a combined 1.9% for the month of May, the first time the values decreased since May 2013.
Melbourne property values lead all capital cities with a decline of 3.6%, followed by Adelaide at 1.8%, Brisbane by 1.7%, Sydney by 1.1%, Perth at a 0.8% decrease and Hobart rounding up the list with a 0.6% drop. Only Darwin and Canberra posted a growth in value, with 1% and 0.1% respectively.
RP Data research director Tim Lawless believes that these results are too early to determine whether property values are on a downward trend, saying that growth cycles in Australia normally last for two years. He also attributes a possible seasonal resemblance to the trends experienced at the same time last year as a possible factor for the decrease in property values.
Read more about this on the Adviser website.