Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Dip in Premium Medians Places Affordable Properties in Spotlight

Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Dip in Premium Medians Places Affordable Properties in Spotlight

Article excerpt

RP Data research analyst Cameron Kusher, today confirmed that a significant drop in median house prices at the top end of the property market has created an unexpected lift for some of the country's more affordable property markets.

According to results covering the March 2011 quarter, the median house price across the combined capital cities is now $478,000 with 20% of the most expensive capital city suburbs recording a fall invalues of - 5.4% over the 12 months to April 2011, compared with a -0.5% fall at the most affordable end and - 0.9% decline across the broad middle 60% of the market.

As an example, Perth's prestigious riverfront suburb, Mosman Park, was the hardest hit In Australia and experienced a - 43.1% drop in its median house prices since peaking back in August 2008.

Mr Kusher said that while the low number of transactions during the quarter affected the results in Mosman Park, there is no doubt that demand and prices in the region have declined.

Across the 25 council areas within the capital cities with the greatest fall in median prices, 17 of the regions had a median house price which was greater than $1 million at their respective peaks.

By the end of the March 2011 quarter, only 12 of these regions had a median house price in excess of $1 million.

To add to Perth's woes, the city now holds 9 of worst performing council regions followed by Sydney (7), Adelaide, Hobart and Melbourne (all 3).

During the last 12 months, most of the regions have continued to record median house price falls.

Only the Sydney suburb of Hunter's Hill (2.9%), Adelaide LGA (5.1%) and Cottesloe in Perth (8.5%) that have recorded any bounce in median selling price during the last 12 months.

In contrast, a number of capital city regions have their median house price holding firm at record highs as shown in the adjoining table. …

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