National dwelling values fell by -2.3% in the last three months 2018, and by -4.8% over the 12 months to December 2018: their largest annual decline since April 2009.

The CoreLogic Decile Report divided the Australian property market into ten equal groups (or deciles) based on tiers of property value and it found that the only market segment to show growth was the 1st decile (properties under $261,215). This segment recorded growth of +0.9% for the quarter and +1.0% for the year to December 2018.  

The more expensive the property, the bigger the fall in value. Over the last 12 months, the 10th decile, featuring Australia’s most expensive properties (valued at $1,104,592 or more) recorded the largest value falls (- 9.6% for the year and -4.2% for the quarter) while the 9th decile also recorded falls more than 5% (-6.5% for the year and -2.8% for the quarter).   
It’s not just the top and bottom market segments that were impacted: values were also lower across most of the 10 market segments measured.

CoreLogic research analyst Cameron Kusher comments:“The trends across each decile suggest stronger housing market conditions are persisting across the most affordable end of the valuation spectrum, potentially being supported by a surge in first home buyer activity and mounting affordability constraints at the higher value end of the market.”
 
He said, “The country-wide trends will also reflect that fact that more expensive properties are located in the capital cities, or more specifically Sydney and, to a lesser extent, Melbourne.  The overall weaker performance across these two housing markets will place some downwards bias across the higher deciles.”