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Real Estate Aerials

Sydney property prices fell during May. Picture: John Appleyard


Sydney dwelling values have recorded their first month-on-month decline in almost a year.

The latest CoreLogic Home Values Index reports the average value of a property across Sydney has dropped 0.4 per cent to $885,159 during May.

Despite less market activity as a result of the coronavirus, the city median dwelling price is still 3.9 per cent higher than it was at the start of the calendar year and 14.3 per cent higher than it was at this time in 2019.

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The reduction in values during May comes as transaction activity in the market shows more positive signs.

Erskineville auction

The market is showing positive signs with auctions back in business. Picture: Adam Yip.


CoreLogic estimates sales activity bounced back by 18.5 per cent in May after a drop of 33 per cent in April.

Houses were the hardest hit stock in Sydney, with the median price down 0.6 per cent to $1,016,726. Sydney held up well compared to Melbourne, where house values dropped by 1.1 per cent to $809,274.

Sydney apartment values remained stable at $772,204 after only recording a 0.1 per cent drop.

CoreLogic head of research Tim Lawless said the market is in a better position than what was expected at the beginning of last month.

“Consumer spirits have lifted, vendors are starting to test the market and buyer numbers have risen.”

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Improved confidence is also flowing through to a rise in new listing numbers. The number of fresh property advertisements bottomed out at historic lows in early May, with the rolling 28 day count up 8.1 per cent compared with the end of April.

Mr Lawless said the relationship between new homes coming up for sale and those being relisted will be key to watch in the months ahead.

Family Selling Home 25 Hunter Street Strathfield

No. 25 Hunter St in Strathfield sold for $200,000 above reserve during May. Picture: Gaye Gerard/ Daily Telegraph.


“If total stock levels become elevated, this indicates that supply levels are outweighing demand. Currently, this does not look to be the case,” he said.

House prices across regional NSW outperformed Sydney, with dwelling values dropping only 0.1 per cent to $467,308. Apartment prices actually grew during May, up by 0.4 per cent to $407,733.

Nationally Australia was in line with NSW, with the average dwelling now worth $557,818 after dropping 0.4 per cent.

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