Melbourne`s housing market was the weakest performing capital city over the past three months, with dwelling values falling 2.1%.
Core Logic has released their newest housing market update for November 2018.
The upper quarter of Melbourne`s housing market, which includes those dwellings valued over $920,000, has felt the brunt of the downturn.
Top quartile properties have recarded a decline of 8.9% over the past twelve months while the most affordable quarter of the market has actually recarded a 2.9% rise in values.
As Melbourne dwelling values trend lower, rental rates are recording a modest rise, which is supporting a gradual improvement in gross rental yields.
Despite the improved rental return, yields still need rise a long way before they are close to their long term average of 3.75%.