Luxury suburbs, coastal strips and flood regions have been
hardest hit as median values plummet. Picture:
File Source: News Limited

Australia’s luxury suburbs, coastal strips and flood regions have
been hardest hit as median values plummeted in a skittish market by
up to 46 per cent last year, according to RP Data figures.

Even the nation’s most expensive suburb
Point Piper has fallen victim to the squeeze, with the median
price of units sliding 37 per cent to $ 1.17 million, in the 12
months to December.

Vendors were also forced to cut prices by almost a quarter in
premium postcodes including
Surfers Paradise on the
Gold Coast and Western Australia’s millionaire’s row

Peppermint Grove.

Scroll down for top 10 worst hit areas

RP Data senior research analyst Cameron Kusher said buyers were
still smarting from the 2008 global financial crisis, with share
market hits and other personal financial losses weighing heavily on
wealthy Australians and retirees.

“Since the GFC people aren’t moving around as much to those once
popular sea change and tree change areas,” Mr Kusher said. “They’ve
lost a lot of money and are rebuilding their wealth.”

The areas with the top 10 price falls of the year feature four tree
and sea change spots including Mittagong in the New South Wales
Southern Highlands and Golden Beach in Victoria.

But it is homeowners in flood-affected
North Booval – a suburb of
Ipswich near
Brisbane – who have suffered the country’s worst falls, with
houses dropping by 46.3 per cent to $ 154,000.

Mr Kusher conceded some homes in Ipswich’s flood-hit areas were
unsaleable but said buyers had “short memories” when it came to
natural disasters.

“If you cut the price enough, any property will sell and if it
doesn’t flood for another five years buying activity will return to
those areas,” he said.

While prices dipped in the towns affected by the Victoria bushfires
and Cyclone Larry in North Queensland, sales volume and prices
picked up within 12 months, he said.

Mr Kusher said property prices had also been reined-in by slower
interstate migration, particularly in Queensland, NSW and Victoria.

However, Australian Property Monitors senior economist Dr Andrew
Wilson said in the capital cities the property gloom was lifting.

Dr Wilson pointed to higher auction clearance rates, and an
improvement in finance commitments, particularly in Queensland, NSW
and WA.

“Perth
and Brisbane remain on track for a recovery in median house prices
this year with healthy increases in buyer activity from the low
levels of 2011,” he said.

“Sydney
and
Canberra should provide the usual solid results over the year
reflecting the chronic underlying shortage of accommodation in
those centres.”

He believes buyers may remain cautious in
Melbourne – with the local economy set to struggle in 2012 -
while sales are expected to lift in
Adelaide.

Although somewhat volatile, Darwin should also finish 2012 with
encouraging housing market results, Dr Wilson says.

Resources would continue to help some regions – particularly in
central Queensland.

“The Gold Coast may also surprise while Newcastle and Orange in New
South Wales and the Macedon Ranges region of Victoria should
continue to attract significant buyer interest.

Top 10 median price drops in percentage terms for
2011

1. North Booval (QLD) -46.3% (houses) to $ 154,000
2. Mittaggong (NSW) -45.1% (units) to $ 225,000
3. Jolimont (WA) -44.4% (units) to $ 342,000
4. Carey Bay (NSW) -42.6% (houses) to $ 266,001 
5.
St Kilda West (VIC) -41.8% (houses) to $ 1,455,000 
6. Port Augusta (SA) -41.5% (units) to $ 120,000 
7. Golden Beach (VIC) -40.9% (houses) to $ 85,750 
8. Rainbow Beach (QLD) -40.8% (units) to $ 219,750
9.
Acacia Ridge (QLD) -40.8% (units) to $ 298,500
10.
Eagle Farm (QLD) -40.4% (units) to $ 786,500

Source: RP Data

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