Decline in Australian housing market has been observed for a second year already, Bloomberg reports. Average property price fell last month by 0,5%, and as a result, annual decline reached 3,5%. These are the weakest results since 2012.

Sydney and Melbourne that showed the highest growth during market rise, now demonstrate the biggest losses. Prices in Sydney fell by 7,4% compared with the last year, while Melbourne prices lost 4,7%.

Luxury segment suffered the most. Expensive property lost 8,6% of its value in Sydney, while cheapest objects lost just 4,6%.

The factor that put the largest downside pressure on the market is loans availability. Regulators tightened the requirements to loans with higher risks.

Taking into account difficulties with credits and pessimistic perspectives for capital gains, investors started leaving the market. It is expected that prices will continue falling during peak season of sales in November and December.