Melbourne and Sydney see steep house‑price drops in prestige suburbs
Domain’s latest report shows the biggest annual falls in Melbourne’s Toorak and Sydney’s Marsfield, with cheaper suburbs posting modest growth.
By Felo News Desk · Published
Domain’s September‑quarter house‑price report released on 30 October 2026 shows the sharpest annual declines in Melbourne’s Toorak and Sydney’s Marsfield, while some lower‑priced suburbs recorded modest gains.
What happened
In Melbourne, the median house price in Toorak fell 25.2% to $4,190,000 over the 12 months to September. Hawthorn, Mont Albert and South Yarra also posted double‑digit drops, down 16.4%, 14.1% and 13.7% respectively. Fitzroy and Carlton North each fell around 13%. In Sydney, Marsfield recorded the biggest fall at 22% year‑on‑year, with Bronte down 15.2%. Across the city the typical house price fell 5.8% to $1,661,167, while unit prices fell most in Darling Point (‑16.8%) and Redfern (‑16.2%). Some outer‑west and inner‑west suburbs – Prospect, Richmond and Haberfield – saw house prices rise more than 23%.
What the reports add
SMH’s Melbourne article lists the ten suburbs with the deepest price falls, highlighting that the premium market is weakening first, according to Domain’s chief residential economist Dr Nicola Powell. The Sydney article adds that unit prices also fell sharply in specific suburbs and notes the strongest unit‑price rise was in Wahroonga (+25.1%). Both pieces cite the same Domain report but focus on different cities and sub‑segments.
What was said
Dr Nicola Powell told SMH that “premium buyers can afford to wait [to sell] so at the top end, buyers are often purchasing by choice rather than necessity… they’re more willing to sit on the sidelines when market conditions are uncertain.” She added that the lower end of the market has shown some growth, though the Melbourne article cuts off before giving the exact figures.
How it came about
The latest declines follow a broader cooling of Australia’s housing market reported on 21 October 2026, when Felo News noted that house prices fell in all capital cities as higher interest rates, cost‑of‑living pressure and tax changes took effect (see earlier coverage). The Melbourne and Sydney suburbs now showing the steepest falls were among those highlighted as vulnerable in that national overview.
Key facts
- Toorak’s median house price fell 25.2% to $4,190,000 in the year to September (smh.com.au)
- Marsfield’s median house price fell 22% in the year to September (smh.com.au)
- Sydney’s overall median house price fell 5.8% to $1,661,167 (smh.com.au)
- Domain’s chief residential economist Dr Nicola Powell said premium buyers are more likely to wait to sell in a downturn (smh.com.au)
Sources
- [1] smh.com.au
- [2] smh.com.au
