Sydney's premium housing market is experiencing a faster rate of decline than the low-end market bracket.
In a recent report, industry think tank CoreLogic said recent drops in home prices were not equal across housing categories: Properties with $1.8m price tag can now be purchased for an average of 7.2% less, while a typical sub-$555,000 home even became more expensive, with prices rising 1.5%.
CoreLogic Cameron Kusher explained that the price growth in the entry-level housing segment may be due to the competition between first-time buyers taking advantage of incentives and buying the cheapest properties.
CoreLogic said homes with values ranging from $1.4m to $1.8m last year were now 6.3% cheaper on average, while those between the $555,000 and $637,327 saw a 0.6% value increase.
Meanwhile, middle market homes at $705,000 to $1.4m, saw property values fall by around 0.8% to 3.9%.
This phenomenon is also reflected in other capital cities including Melbourne and Brisbane.