Prices of detached houses in areas such as Woollahra, Paddington, Bondi and Double Bay - where auction clearance rates were consistently the highest for the city each week - would fall by 9.3 per cent in 2018, only surpassed by the inner city house prices which will fall by 10.1 per cent.
Overall, detached house prices in Sydney will fall 4.2 per cent by the end of 2018 while apartment prices will stay mostly flat.
Moody's Analytics has projected house prices for the next two years based on prices taken from CoreLogic's Hedonic Home Value Index series.
Melbourne's house prices however would continue to rise moderately due to a robust local economy, and strong inflows of interstate and overseas migration.
Detached house prices in greater Melbourne will rise 3 per cent and 0.9 per cent in 2018 and 2019 respectively. Apartment prices will rise even more for Melbourne, going up 5.2 per cent in 2018 and 2.2 per cent in 2019.
House values across Brisbane were expected to gain 1.8 per cent in 2018, with strength in West Brisbane and Inner Brisbane offsetting declines in South Brisbane and Logan-Beaudesert areas, the report added.
