Australian property prices dropped nationally for the seventh straight month in April led by the two main Australian city markets.
The latest data from April released by CoreLogic this week showed that Australian property prices in Sydney and Melbourne fell by 0.4 per cent over the month, leading to a national fall of 0.1 per cent.
The latest fall means that property prices in the biggest market of Sydney are now down by 3.4 per cent year-on-year when compared to April 2017.
Prices across the eight state and territory capitals fell 0.3 per cent in April from a year earlier, the first decline since November 2012.
However, it was not all doom and gloom in Australian property markets as regional values fared better.
In the 12 months to the end of April, regional values climbed 2.4 per cent, according to CoreLogic. Combined capital city values appreciated at an annual rate of 6.8 per cent in the past five years, almost double the annual rate across the combined regional markets of 3.5 per cent.
Hobart continued to be the star performer in Australia, attracting both Australian and overseas property investors alike. The Tasmanian state capital was the only city where home values rose more than one per cent in April. At A$430,138 the average Australian property in Hobart still costs less than half its equivalent in Sydney.
CoreLogic head of research Tim Lawless commented: ‘The latest trends are virtually the opposite of what we have become used to over the past five or so years.’
He continued: ‘Regional areas are now outperforming the capitals, and units are outperforming houses. Also, the most expensive properties are now showing weaker conditions than the more affordable ones.
Overseas property investors may wish to concentrate on Australian property in the regional markets for the time being.