Housing Total Returns Slump Over The 2018-19 Financial Year

Over the 2018-19 financial year, total returns from residential property recorded a fall of -3.3%. The returns were down from the last year and was only financial year at least 2005/06 that the total residential property came back negative. To put this into context, housing returns from last year were worse than those that were recorded during the financial crisis and during 2010-12 housing downturn. The merging of the fallen values and historically low rental yields have driven total returns into negative territory.

Although looking at the national figures in the context of the combined capital cities and combined regional markets have shown that returns have reduced over the year across both regions. However, the combined capital city returned with a fall of -4.5% while combined regional market returns remained mildly positive at 1.6%. For the combined capital cities it was the weakest returns on record and was the first negative annual return, while across the combined regional markets it was the weakest annual return since 2008-09.

The total returns in Victoria were lower over the recent financial year in Melbourne (-6.0) and regional Victoria (4.5%). For Melbourne it was the first financial year in which returns were negative since 2011-12 and was the largest fall in total returns on record. Regional Victoria total return remained positive; the market experienced a substantial slowing from previous year.  Besides it was the slowest growth in total returns for regional Victoria since 2011-12 when it increased by 3.5%.