Australia's property market is in a downturn for the first time in almost two years. There's been a fall in value at a national level which is masking a two-speed situation some smaller capitals are still going up in price, whilst Sydney and Melbourne are seeing relatively large drops.
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00:00When an apartment inside this Sydney block was put up for sale, its owners Mark and Candice
00:08thought that they'd get more than $800,000.
00:12Only one person turned up at the auction and the property got passed in.
00:16The self-funded retirees had to push ahead because they'd just hit a mortgage cliff with
00:22their investment property coming off its fixed interest rate.
00:25We went from about 2.4% to a little over 6% and it just wasn't financially viable.
00:32We finally were able to sell at $790,000 and settled in early December.
00:36It's a trend that's starting to play out nationally as property prices dropped by 0.1% last month.
00:44The first decline in nearly two years, which really does set the scene for a soft start
00:48to 2025.
00:50Higher interest rates are finally hitting people's borrowing capacity.
00:54The rate of growth is slowing down pretty much everywhere, but there's still a lot of
00:58variance and variability in the statistics.
01:02Prices in Perth are still rising with a jump of almost 20% last year.
01:09Brisbane's market is also booming along with Adelaide and Darwin slightly up.
01:14Sydney meanwhile is going backwards.
01:17Hobart is also in a downturn along with Canberra home prices.
01:22And Melbourne is now the third cheapest capital city in Australia, helping to send the national
01:28numbers backwards.
01:29I've been through all the documents.
01:31This mortgage broker says lucky first home buyers are getting help.
01:34I've seen clients with lowish income, $60,000 to $70,000 per year in income and getting
01:39deposits of up to $500,000 off their parents.
01:42While years of soaring prices mean that others are totally locked out of the Australian dream.
01:49Housing affordability is set to dominate this year's federal election.
01:54Property prices could even start rising again if the Reserve Bank cuts interest rates, which
01:59some economists are tipping they'll do as early as next month.