High-density city house prices plummet as further rate rises loom

Upmarket suburbs in Austrlia's two most populopus cities are reporting property price declines not seen for almost two years.
And, with more interest rate hikes expected, that trend could continue.

Sydney and Melbourne have suffered the first quarterly decline in property prices in almost two years - before the Reserve Bank of Australia slashed the cash rate to a record-low 0.1 per cent.

Higher-income households tend to hold more housing debt to income, so do property investors, that’s why the high end of the market can often be more sensitive to changes in interest rates or credit conditions, but this can also affect some other popular investment markets such as inner city areas.