City property values to fall 10pc: APM - ABC News (Australian Broadcasting Corporation) Australian Property Monitors (APM) says the the value of houses and units will fall by 10 per cent across all major capital cities over the next year. The organisation says house values in the June quarter dropped to their lowest level since 2004, as rapidly rising interest rates gripped the market. APM general manager Michael McNamara says there has been a dramatic turnaround in sentiment after recent booming house prices. "The implication of falling property prices is that those borrowers that took out 100 per cent loans, or those borrowers that flew too close to the sun by taking out loans with very small deposits, may find themselves in a situation very soon where they're sitting on negative equity," he said. "There is no doubt that the Australian market will see more foreclosures, repossessions and bankruptcies over the coming years. "But it's unlikely that we're going to see the same sort of widespread abandoning of the family home as what is happening in some of the rust-belt cities of the United States."