Record falls for Sydney and Melbourne housing in 2022 – but prices remain above pre-Covid levels

Australian property prices dropped by the largest amount since the global financial crisis, but analysts predict the decline will bottom out in 2023. Photograph: Paul Miller/AAP

Sydney, Melbourne and Hobart posted record annual falls in property prices in 2022 as higher interest rates sapped demand and amounted to the largest national decline since the global financial crisis, industry analysts say.

However, rent increases were “virtually off the charts” rising an average of 10.2% nationally.