Australia
Fri 1st March , 2019

House prices in Sydney have been falling fastest in two decades

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House prices in Sydney have been falling fastest in two decades, at 4.5% in the last quarter, and over 12% over the past 12 months, according to CoreLogic Data.

The current house prices is back to mid-2016 levels. Some leading economists estimated the price levels could fall by 25%, amid low clearance rate and tightening lending regulations.

Although sharpest fall in many decades, Sydney remains one of the most expensive cities in the world, setting at around $1m mark, which is still un-affordable for most of first home buyers.

If based solely on affordability, Sydney house prices could fall by 50%, on par with the levels in Adelaide and Brisbane. However, this could create a catastrophic effect for the Australian economy, on which RBA and the Government are on close watch for necessary interventions, such as loosing lending practices or easing fiscal polices.