Australian Home Prices Extend Decline

Australia’s Cotality Home Value Index fell 0.9% month-on-month in August 2026, following a 1.2% decline in July. Home values are now 3.6% below their peak, although still 2.7% higher than a year earlier, as the housing downturn spread across more capital cities and regional areas, with the prospect of further policy tightening pointing to tougher conditions ahead. Sydney and Melbourne again led the declines, falling 1.4% and 1.1%, respectively. Nearly all capital cities recorded losses, with momentum also cooling in previously strong markets such as Brisbane and Perth, which fell 1.0% and 0.8%, respectively. Cotality said Sydney prices, now 7.1% below their February peak, were now falling faster than during the 2022-23 correction, when the RBA raised interest rates by 425 basis points and home values declined 6.6%.

Australia’s Cotality Home Value Index dropped 0.7% month over month in July 2026, marking the sharpest monthly decline since December 2022 and accelerating from a 0.4% fall in the previous month. The downturn was driven by higher borrowing costs, affordability pressures, and weaker consumer sentiment that continued to weigh on housing demand. Among the major capitals, Sydney and Melbourne continued to lead the losses, with home values falling 1.4% and 1.2%, respectively. The weakness also spread to previously resilient markets, with Brisbane declining 0.6% and Adelaide slipping 0.2%, marking their second straight monthly decline, while Perth posted a modest 0.1% gain after contracting in June. Regional markets also softened, with the combined regional index falling 0.2%, its first monthly decline since January 2023. Despite the monthly setback, Australian home prices remained 5.3% higher than a year ago in July.

Australia’s Cotality Home Value Index fell 0.4% month over month in June 2026, marking the steepest monthly decline in three and a half years. The downturn reflects the fading momentum of the country’s record housing boom as higher borrowing costs weighed on affordability and a tax crackdown on investment properties dampened buyer demand. Among the major capitals, Sydney and Melbourne recorded the largest declines, with home values falling 1.2% and 1.0%, respectively. Growth also lost momentum across the mid-sized capital cities, with Adelaide flat, Brisbane posting a modest 0.3% gain, and Perth rising 0.7%. Despite the monthly setback, Australian home prices remained 7.3% higher than a year earlier in June.