Best-performing suburbs for 2018 revealed

This was the largest annual fall since December 2011.

Sydney saw the largest annual fall for dwelling values out of all the capital cities at 8.1 per cent, its highest since May 1983. Melbourne followed with a decline of 5.8 per cent, 4.2 per cent in Perth and then 0.8 of a percentage point in Darwin.

Hobart meanwhile was the highest growing capital city for dwelling values with a rise of 9.3 per cent, followed by 4 per cent in Canberra, 1.4 per cent in Adelaide and 0.3 of a percentage point in Brisbane.

The core of this slowdown, according to Mr Kusher, was not an economic slowdown or higher mortgage rates, but the combination of tightening credit conditions, a growing economy and mortgage rates at near record lows.

“Since the onset of financial deregulation in the mid-1980s, credit access at the time became a whole lot easier for borrowers,” Mr Kusher said.

“However, since macroprudential policies implementation began in 2015, accessing credit has become incrementally more difficult and where investors and interest-only borrowers are having to pay higher mortgage rates.”

The outlook for 2019

Mr Kusher did not expect conditions to change much in the new year, and is likely we will see “more of the same”; more national declines driven by Sydney and Melbourne.

However, he did say value growth is expected to either slow or hold steady in the rest of Australia amid tighter credit conditions.

“2019 credit conditions are expected to remain tight – a likely catalyst towards dampening housing market conditions. February will see the release of the banking royal commission findings and recommendations and will potentially deliver significant changes for the mortgage landscape,” Mr Kusher said.

“To-date the Reserve Bank has not been overly concerned with falling dwelling values largely because it has mostly been contained to Sydney and Melbourne and both cities have seen a substantial run-up in values over recent years.

“While that may be the case, if the slowing housing market delivers an impact consumer consumption, we could then see a change of tact. Were this to happen, we could see some of the temporary macroprudential measures eased back throughout 2019.”

CoreLogic also revealed their top performing suburbs for 2018 from across the country:

Category	Houses	Units
Highest median value	Bellevue Hill, Woollahra, NSW: $4,670,293	Point Piper, Woollahra, NSW: $2,232,840
Lowest median value	Zeehan, West Coast, Tas: $71,184	Newman, East Pilbara, WA: $96,274
Lowest median value within 10km of a capital city	Risdon Value, Clarence, Tas: $257,585	Glendalough, Stirling, Tas: $244,677
Greatest 12-month change in median values	Emerald, Central Highlands, Qld: 37.4%	Warwick, Southern Downs, Qld: 32.8%
Greatest five-year change in median values	Exeter, Wingecarribee, NSW: 150.6%	Ettalong Beach, Central Coast, NSW: 84.6%
Highest gross rental yields	Newman, East Pilbaram, WA: 14.9%	Port Hedland, Port Hedland, WA: 16%
Highest gross rental yields within 10km of a capital city	Clarendon Vale, Clarence, Tas: 7.6%	Carlton, Melbourne, Vic: 6.9%
Highest median weekly advertised rents	Bellevue Hill, Woollahra, NSW: $2,500	Millers Point, Sydney, NSW: $1,200
Lowest median weekly advertised rents	Queenstown, West Coast, Tas: $143	Moe, Labtrobe, Vic: $160
Highest total value of sales	Mosman, Mosman, NSW: $1,031,345,280	Melbourne, Melbourne, Vic: $793,697,472 You need to be a member to post comments. Become a member for free today! Related articles Author Sasha Karen Know more More from this writer: Where to find winners in the WA market How rents have performed for investors so far this year How to save money with a new repayment strategy Popular capital cities on the rise as market softens over June Cash rate call for July 2019 revealed New property sales rebound over May How far can a $500,000 budget get you in Sydney?