The suburbs where house prices have plunged by 15% in just a year as Sydney is hit by the worst downturn in decades and average property values plummet by $120,000
- Domain House Price Report indicated drop of up to 15 per cent in some suburbs
- Average property prices in Sydney dropped up to $120,000 over past 12 months
- Sydney and Melbourne proved to be the hardest hit cities in housing market
- Canberra remained the best performer as Adelaide and Hobart followed behind
Homeowners have been dealt another hard blow in an increasingly shaky housing market that has precipitated one of the steepest property downturns in decades.
The latest Domain House Price Report said values had plunged up to 15 per cent in some Australian suburbs with Melbourne and Sydney among the hardest hit.
House prices in Sydney dropped 9.9 per cent over the year to December - a third of which came in the last quarter alone - to represent the biggest market correction since March 2005.
Average property values in Sydney plunged by almost $120,000 after unsustainable sharp rises in the preceding decade.
Homeowners have been dealt another hard blow in an increasingly-strained housing market with one of the steepest property downturns recorded in decades (stock picture)
The latest Domain House Price Report indicated a plunge of up to 15 per cent in some Australian suburbs with Melbourne and Sydney cities among the hardest hit (stock picture)
Domain reported its senior research analyst Nicola Powell said the price fall of 11.4 per cent from the mid-2017 peak was the 'sharpest downturn in more than two decades'
Suburbs in the city's south lost a dramatic 14.8 per cent, Canterbury and Bankstown buckled under a 12.4 per cent blow while the city and east copped a 10.4 per cent drop.
Domain reported its senior research analyst Nicola Powell said the price fall of 11.4 per cent from the mid-2017 peak was the 'sharpest downturn in more than two decades.'
Melbourne suffered an 8.4 per cent slump for the year.
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The inner east copped a staggering 16.2 per cent plunge, the inner south a 15.6 per cent decline and the CBD a 15.3 per cent deficit.
Overall, Brisbane managed to keep its head above water and plateaued with no growth or loss.
Greater Brisbane held steady, with a marginal downturn of 0.1 per cent across Brisbane, Ipswich, Redland, Moreton Bay and Logan.
The capital of the Sunshine State proved to be the fourth-best performing city behind Hobart, Adelaide and reigning front runner Canberra.
Experts say the more affordable regions were propped up on returning first-home buyers and tighter lending restrictions on house hunters (stock picture)
As the news comes as a blow for many homeowners, skeptics say the downturn hasn't even reached midway (stock picture)
'Queensland remains a magnet for interstate migrants, which is currently at a 12-year high, and more residents are moving from overseas,' Ms Powell said.
While the downturn had come as a blow to Sydney and Melbourne homeowners, there is a strong risk that the worst is yet to come.
'We've got more downside to go,' AMP capital chief economist Shane Oliver said.
He said reduced demand from foreign buyers and shrinking clearance rates were partly to blame for the downslide in the harder hit areas.
'This is all happening at a time when credit conditions are quite tight and there is uncertainty around tax changes,' he said.
He predicted the market should improve next year, and the downturn could bottom out even earlier than that.
AMP capital chief economist Shane Oliver pointed out the reduced demand from foreign buyers and shrinking clearance rates were partly to blame for the downslide in the harder hit areas (stock picture)
Even so Mr Oliver predicted the market could turn around next year, though said if price falls kept pace it could bottom out earlier (stock picture)
