Australian capital city house prices fall across all major markets

Australian capital city house prices experienced a decline in every major market during the September quarter, marking the first time this has occurred in 15 years. According to the Domain House Price Report, combined capital city house prices fell 4.7 per cent, while unit prices dropped by 3.5 per cent.

Perth and Brisbane recorded the most significant quarterly declines. Perth house prices fell 7.4 per cent, its largest quarterly drop on record, while Brisbane saw a 5.4 per cent decrease, also its steepest quarterly fall. Sydney house prices fell 4.7 per cent, representing the largest annual decline of any capital city at 5.8 per cent.

Other markets also saw declines, including Melbourne (3.0 per cent), Adelaide (3.0 per cent), Hobart (3.0 per cent), Canberra (2.6 per cent), and Darwin (2.6 per cent). Darwin was the only capital city where unit prices rose, increasing by 2.2 per cent.

Market analysts suggest the downturn is driven by rising interest rates, global uncertainty, and tax policy changes. Cotality’s daily dwelling values index shows a 7.6 per cent plummet since early April across five major cities. Financial institutions such as HSBC and ANZ have downgraded their forecasts, predicting further peak-to-trough declines of up to 13.5 per cent.