Nearly a third of houses sold for less than $400,000 last FY

Unsurprisingly, very few houses and units in Sydney transacted for less than that

Nearly a third of houses sold for less than $400,000 last FY

National dwelling values may be falling, but it isn’t having much of an impact on the lower end of the housing market. The sales volume of dwellings worth under $400,000 continues to trend down, according to a report released recently by CoreLogic.  

The slowing down of dwelling value growth over the 2017-18 financial year, from an increase of 10.2% to a decline of -0.8% over the previous year, did little to boost the sales of the most affordable properties.

According to the report, “nationally, 29.2% of all houses and 34.6% of all units sold during the 2017-18 financial year transacted for less than $400,000”. The share of sales below the price point fell from 30.7% for houses and 35.4% for units a year earlier. However, the share of sales under $400,000 went slightly up during the past few months for both houses and units.

The report also pointed out that “the share of sales below $400,000 is predictably much larger across the regional areas of the country than within the capital cities”. Over the financial year, 49.6% of all regional house sales and 57.3% of all unit sales transacted for less than $400,000.    

“With values now falling in Sydney and Melbourne it is unlikely to initially result in an increase in sales under $400,000; however, should it continue for a number of years we may finally see a reversal of the declining trend in sales under $400,000,” CoreLogic researcher analyst Cameron Kusher said in a statement.