Sydney property values have fallen 9.5 percent since they peaked in July of last year, according to the latest figures from property-information group CoreLogic.
November represented the weakest monthly result for Sydney property since the global financial crisis with a 1.4 percent decline, ahead of 1 percent drop in Melbourne, the Australian Financial Review (AFR) reported on Monday.
"For Sydney, 1.4 percent is the biggest monthly fall we've seen so far this downturn," Corelogic head of research Tim Lawless told AFR.
"The last time we saw a bigger monthly fall was back in 2004 but that was only one month and otherwise you'd have to go back to 1989 to see values falling faster than this."
The city's largest downturn on record was in the recession between 1989 and 1991 and Lawless says it is likely that Sydney will "set a new record in terms of the magnitude of price decline and the length of decline."
A tighter lending environment is contributing to price declines with investor home loans growing at their slowest annual pace on record according to recent Reserve Bank of Australia figures.