The drop in prices translated into a large hit to the wealth of homeowners with the value of all residential property down $70.1 billion through the quarter. So far this year,collective values have tumbled by almost $106 billion.
Ernst&Young Sydney managing partner Andrew Price said the figures pointed to a significant downturn in Sydney and Melbourne,pointing to the tightening of lending standards as a substantial factor.
"Unlike previous downturns,it’s occurring during a period of low unemployment and strong economic conditions,which suggests that regulatory settings are playing a major role,"he said.
While housing prices have been falling for much of the year there had been more positive signs out of the business sector.