By JOHN VAN KLAVEREN
UNITS in the Barwon region tumbled 18.6 per cent in value from their peak, according to new figures from RP Data.
The drastic fall was the third biggest nationally after two regions in Queensland.
Unit prices in the Queensland’s Wide Bay-Burnett region fell 19.8 per cent and were down 19.3 per cent in the Far North region.
The data measured the falls from the real estate market’s peak and the largest capital gains in the last five years across the country.
The fourth and fifth largest declines in unit values were also in Queensland, on the Gold and Sunshine coasts.
However, houses in the Barwon region recorded a 6.4 per cent annual increase in value over the past five years, placing at 21 in the top 30 nationally.
RP Data’s Tim Lawless said the largest declines were concentrated in coastal and lifestyle markets where investors and holiday home owners who often sold in times of “financial distress”.
“A large number of properties were added to the market in these areas at a time when buyer demand was virtually non-existent,” Mr Lawless said.
“Unit dwellings in these markets are often more reliant on short-term holiday rentals or long term rental demand from service workers associated with the tourism and retail sectors, both of which have shown weakness post-GFC.”
Mr Lawless said traditional sea-change markets normally attracted retirees but housing and unit demand slowed as prospective retirees rebuilt their wealth before downsizing.
“There’s also the fact that most of these markets recorded a strong run up in values pre-2008 and were arguably over-valued.”
