The Pulse
“Outside of all the biased hype in the media-affordability metrics are kicking in as over leveraged mortgage holders take stock & lending standards tighten in the 70%+ LVR zone”
A $1.9M Trend Amid Widespread Price Slumps
A recent report reveals a striking shift in Australia’s property market: home sale prices are falling in 938 suburbs, while a rising number of homes are now priced around AUD 1.9 million. (Yahoo Finance Australia)
This contrast — widespread declines in many areas and high-price listings in others — suggests a bifurcation taking hold: prime or premium properties remain buoyed, while value and mid-price segments feel more pressure.
Why the Divergence Is Happening
- Demand Constrained in Mid-Markets: Many buyers are being priced out or priced down due to tighter borrowing capacity, higher interest rates, and elevated living costs, reducing competition in mid-range suburbs.
- Premium Properties Holding Value: High-end and luxury properties may be insulated by wealthier buyers less sensitive to financing constraints, preserving prices in certain suburbs.
- Supply Imbalances & Market Lag: In suburbs where demand is falling, supply builds up, pushing prices downward. But in desirable areas, supply remains scarce, sustaining higher valuations.
- Psychological Anchoring & Listing Strategy: Some sellers may anchor listings at premium price points hoping for high offers, while many more modest sellers reduce prices to attract buyers — accentuating the disparity.
What This Means for Buyers & Investors
- Be cautious about chasing premium markets — higher prices may look safe, but margins for capital gains could shrink in an overall cooling market.
- In “slumping” suburbs, bargains may emerge, but ensure you check local fundamentals — vacancy, amenities, access, and trend consistency.
- Negotiate aggressively in mid-markets, where buyer leverage is rising.
- Stress test your borrowing in areas with falling prices — if your value drops relative to loan, risk of negative equity emerges.
- Monitor upcoming data — such as quarterly indices (e.g., PropTrack, CoreLogic) to see whether the slump is broadening or stabilizing.
Final Thoughts
Australia’s property market is no longer moving in one direction. While premium homes continue to attract high-net-worth buyers, thousands of everyday Australians are watching property values slide, challenging long-held assumptions about “safe” real estate investments.
At MyMoneyMedic, we believe this is the perfect time to step back, reassess, and ensure your financial health can withstand volatility — whether you’re buying, selling, or simply staying put.
Our tools, including the PulseCheck, are designed to help you understand how market shifts impact your financial wellbeing. We also connect you through the Care Portal for tailored support if financial stress begins to take a toll.
Because real financial care means more than numbers — it’s about your peace of mind.