Sydney’s median house cost has dropped by 1.9 percent over the last three months, despite ongoing interest from Chinese investors.
Apartments in the city’s lower north shore are among those to take the biggest hit, plunging by 6.7 percent, while properties in inner-city Sydney and eastern suburbs dropped six percent, Fairfax Media reports.
Sydney’s median apartment price also fell by 0.8 percent, as the city’s five-year property boom at last draws to a close.
AMP Capital Chief economist Shane Oliver has told Fairfax Media “The Sydney market has well and truly cooled”, and said he expects property values could fall by as much as 10 percent.
Unit prices in Adelaide, Canberra, Melbourne and Hobart are up. (9NEWS)Rental prices in Darwin, Brisbane, Adelaide, Sydney and Melbourne are holding steady. (9NEWS)Unit prices in Darwin, Brisbane, Perth and Sydney are down. (9NEWS)Rental prices in Perth are also down. (9NEWS)
The property slump can largely be attributed to housing affordability, Grattan Institute chief executive John Daley added.
“House prices in Sydney have become very high relative to disposable income, and household debt relative to household income is at an all-time high,” he said.
Domain Group chief economist Andrew Wilson said there was a strong possibility property prices would not rise again this year.
Domain chief economist Dr Andrew Wilson. (9NEWS)A row of residential properties in Sydney. (AAP)
These new statistics come amid an Credit Suisse analysis revealing Chinese buyers are snapping up an estimated one in four new homes in New South Wales.
The continued export and investment of Chinese middle class wealth into the Australian property market consequently is expected to maintain a floor on the city’s property price, with the NSW foreign buyer surcharge and a Chinese government crackdown failing to put a dampener on foreign interest.
Sydney’s median house price previously fell 3.1 percent in 2015.
© Nine Digital Pty Ltd 2017