Property market moderates

03 August 2018


The May CoreLogic home value index reported that national dwelling values have fallen 0.4% in the last year – the first annual decline since 2012*.

It is important to note that there is not one property market in Australia, and even within cities there are numerous markets. At a high level, capital cities are down 1.1% in the last year, while regional locations have increased 2.2%. Sydney (-4.2%), Perth (-1.8%) and Darwin (-7.9%) are the only capitals with negative growth, while Hobart had the highest growth at 12.7%*.

These numbers need to be taken in to perspective – for instance, while the Sydney market is down in the last year, it remains up 88.9% since the beginning of 2009^.

The chart below shows that Australia’s residential property portfolio was worth $7.6 trillion in June, up from $7 trillion at the same time last year. This is almost three times the value of all the money held in superannuation, and over four times the value of the share market**.


Despite superannuation being compulsory since 1992, around 80% of Australians entering retirement receive at least a part Age Pension. These statistics outline the growing number of senior Australians who are unable to fund what is considered a ‘comfortable retirement’.

However, there are a number of ways in which people can release the equity held within their homes, such as downsizing, selling a portion of their property, or taking out a reverse mortgage.

Heartland is proud to have helped more than 15,000 Australian seniors enjoy a better retirement through our reverse mortgage.

Whether renovating, exploring the world, or just taking the stress out of everyday expenses, a Heartland reverse mortgage can help provide peace of mind in retirement.


At Heartland, we are very aware that our customers’ homes are more than investments, a home can be a place full of memories, providing a connection to family and community, giving security and independence. Whilst changes in property values are interesting, they are not particularly relevant in the short term compared to the importance of the family home.

Whether you are an existing customer and have questions about your loan, or are looking at reverse mortgages for the first time, please feel free to contact our friendly team on 1300 889 338 or [email protected]. We are here to help you.



Information provided is accurate as at 3 August 2018 and may change from time to time.

CoreLogic Hedonic Home Value Index, May 2018 Results

CoreLogic Leaders Forum Melbourne June 2018

** CoreLogic Housing Market and Economic Update – June 2018