Brief

Australian home values fall 5% from March peak as rates rise

Cotality’s index reports a 5% national decline, with Sydney down 8.6% and Melbourne down 7.2% from recent peaks.

By Felo News Desk · Published Wed, 30 Sep 2026 21:48:15 GMT

Australia’s national home‑value index fell 5 per cent from its March peak, extending a six‑month slump, Cotality reported on 1 October 2026. Prices dropped in every capital except Darwin, with Sydney’s median dwelling value at $1,198,596 – 8.6 per cent below its February peak, and Melbourne’s values 7.2 per cent below their November 2025 high.

The Reserve Bank raised the cash rate by 0.25 percentage point on Tuesday to a 15‑year high of 4.6 per cent, adding to demand‑side pressures. The federal government’s earlier overhaul of capital‑gains tax and negative‑gearing rules also dampened investor demand, according to Cotality.

Brisbane saw the sharpest monthly fall at 1.5 per cent, while Perth’s prices slipped 0.5 per cent, leaving the city 6 per cent below its April peak. Tim Lawless, Cotality’s research director, said the market is likely to remain under downward pressure in the coming months.

Key facts

• National home values fell 5% from March peak (smh.com.au)
• Sydney median dwelling value is $1,198,596, 8.6% below February peak (smh.com.au)
• Melbourne values are 7.2% below November 2025 peak (smh.com.au)
• Reserve Bank cash rate increased to 4.6% on Tuesday (smh.com.au)
• Brisbane house prices fell 1.5% in September, 5.4% since May peak (smh.com.au)

Sources

• [1] smh.com.au — originally reported as “Australian home values: Property prices fall for sixth consecutive month as Sydney and Melbourne lead downturn”