Brief
Australian house prices fall in all capitals as market cools
Domain’s September‑quarter report shows declines across all capital cities, driven by higher rates, cost‑of‑living pressure and tax changes.
By Felo News Desk · Published
Domain’s September‑quarter 2026 house‑price report shows prices falling in every Australian capital city for the first time in 15 years, according to the outlet’s chief residential economist Nicola Powell.
Sydney’s median house price slipped 4.7% to $1.66 million, the lowest in two years. Melbourne recorded a third consecutive quarterly decline, down 3.3% to $1.014 million, while Perth posted the sharpest fall on record at 4.7%.
Brisbane and Adelaide also logged their steepest quarterly drops on record, and Hobart and Darwin joined the downward trend.
Powell attributed the broad‑based downturn to higher interest rates, persistent cost‑of‑living pressures and recent changes to housing‑investment tax policy, saying buyer sentiment is weak and homes are taking longer to sell.
Morgan Stanley economists warned the market may not bottom until the second half of 2027 and could see a total decline of up to 15% from peak to trough.
Key facts
- Sydney median house price fell 4.7% to $1.66 million in the September quarter (theguardian.com)
- Melbourne median house price fell 3.3% to $1.014 million, remaining just above the $1 million mark (theguardian.com)
- Perth recorded a record 4.7% quarterly drop, the sharpest decline among capitals (theguardian.com)
- Higher interest rates, cost‑of‑living pressures and tax policy changes were cited as drivers (theguardian.com)
- Morgan Stanley predicts the market could fall up to 15% from peak to trough, bottoming in late 2027 (theguardian.com)
Sources
- [1] theguardian.com — originally reported as “House prices falling in every Australian capital city for first time in 15 years”
