But if you’re looking to buy, that is a good thing and there could be plenty of bargains out there.
According to Eliza Owen, head of research at property data group CoreLogic, “the stringent government response to COVID-19 has undoubtedly placed the property market cycle at the cusp of another downswing”.
Nationally, across much of our capital cities, Australia’s property values were on the increase before COVID-19 hit, after unexpectedly strong growth at the back end of last year. However lockdown in mid-March put an end to that, as restrictions were placed on home inspections and auctions and the economy slid into neutral.
Across the country, home value index results in May slid 0.4 per cent. But according to Ms Owen “preliminary indicators for June are showing the rate of decline has gathered some momentum through the month”.
From March through to May, a number of property regions across Australia have fallen, places where buyers can now pick up a bargain.
Many of the most dramatic falls over that period have occurred in Melbourne’s inner city and eastern suburbs, where values in Malvern East slumped 4.8 per cent, in Glen Iris they were down 3.8 per cent, in Northcote they slipped 3.5 per cent, in Port Melbourne -3.2 per cent and in Bruswick East -3.1 per cent.
In Sydney over that time, North Sydney, the Inner West and the North Beaches have been the hardest hit. Mosman fell 2.5 per cent, Lane Cove North (-2.4 per cent), Manly (-2.3 per cent), Leichhardt (-1.7 per cent) and Wentworth Point (-1.4 per cent).
In greater Perth, values in Mandurah have fared the worst, falling 2.2 per cent.
In greater Brisbane, Ipswich led the downturn with a three-month decline of 0.8 per cent, followed by a fall of 0. 5 per cent in the Inner City.
Across Adelaide, prices have remained steady.
In Darwin values increased 0.1 per cent.
HOW PROPERTY REGIONS HAVE FARED FROM MAY TO MARCH
Melbourne - Inner South -2.2%
Melbourne - Inner -1.8%
Melbourne - Inner East -1.8%
Perth - South East -1.2%
Melbourne - Outer East -1.2%
Sydney - North Sydney and Hornsby -0.7%
Sydney - Inner West -0.7%
Sydney - Northern Beaches -0.7%
Melbourne - North East -0.6%
Brisbane Inner City -0.5%
Mornington Peninsula -0.5%
Brisbane: Logan - Beaudesert -0.5%
Melbourne - South East -0.4%
Sydney - Inner South West -0.4%
Sydney - Baulkham Hills and Hawkesbury -0.3%
Perth - North West -0.3%
Moreton Bay - South -0.3%
Sydney - Sutherland -0.2%
Sydney - South West -0.1%
Sydney - City and Inner South 0.0%
Adelaide - North 0.0%
Melbourne - West 0.0%
Perth - North East 0.0%
Brisbane - South 0.0%
Central Coast, NSW 0.0%
Perth - South West 0.1%
Sydney - Blacktown 0.2%
Sydney - Parramatta 0.2%
Melbourne - North West 0.2%
Adelaide - South 0.4%
Moreton Bay - North 0.4%
Perth - Inner 0.5%
Sydney - Outer South West 0.5%
Australian Capital Territory 0.6%
Sydney - Outer West and Blue Mountains 0.7%
Sydney - Eastern Suburbs 1.1%
Adelaide - Central and Hills 1.1%
Brisbane - North 1.1%
Brisbane - East 1.3%
Brisbane - West 1.9%
Adelaide - West 2.0%
Sydney - Ryde 2.3%