As Bloomberg informs, conditions of Australia’s property market in July got worse, as prices showed the biggest drop in seven years.

Housing prices across the country fell 0,6% last month. Pace of decline accelerated in Sydney and Melbourne.

Prices have been declining for ten months already due to restrictions on mortgages as well as reduced demand from investors. The latter also observe sliding rents among perspectives of low capital gains and increasing mortgage costs. Rents fell by 0,2%.

According to experts, market fall will continue in the second half of 2018, and the main reason is low availability of credits.

House prices in the country fell by 1,9% compared with peak levels of September, however they still 31% higher than five years ago.