Sydney and Perth are experiencing drops in demand, while Tasmania and the ACT have seen an increase.
New data from realestate.com.au combines REA Group’s data for property demand and CoreLogic data for property values.
Analysis from the report shows that despite the Reserve Bank of Australia (RBA) holding cash rates, banks are continuing to cut mortgage rates in order to maintain volumes.
REA Group Chief Economist Nerida Conisbee says that no area is more challenged than Sydney at the moment. It is down 25% from last year, with a median property price of $800,000 and it is expected to see continued declines.
Hobart is experiencing the strongest increase in buyer demand and this is expected to grow throughout 2018.
Conisbee said: “Across Australia, property prices have increased by 6.3% over the year. Over the past quarter, however, there’s been a significant slowdown with prices falling and demand for property continuing to slacken nationwide.
“The Financial Services Royal Commission will likely result in further restrictions on lending, and the flow of money into residential property is slowing, which is going to have a big impact on property prices in 2018.
“With Hobart performing strongly, it’s not surprising that half of the top 10 most in-demand suburbs are located there.”
The top 10 most in-demand suburbs across the entire country are split evenly between Tasmania and Victoria.
Canberra has also seen an increase in demand, particularly in terms of apartments.
Melbourne has experienced a 3% downturn in prices over the past quarter, yet levels of interest from buyers suggest that a downturn will be relatively short-lived and prices will rise over the course of 2018, albeit at a slower rate than in 2017.