Australian housing market sees sharp price drop and Blackstone loan portfolio acquisition

Cotality’s Home Value Index reported that Australian home prices fell 0.7% in July, the steepest monthly decline since December 2022. The drop was led by Sydney (‑1.4%) and Melbourne (‑1.2%) and spread to mid‑sized markets such as Brisbane (‑0.6%) and Adelaide (‑0.2%). Upper‑quartile home values fell 3.2% nationally, while lower‑price homes saw a modest 0.3% gain. Researchers linked the slowdown to supply‑demand imbalances and recent federal budget policy changes, noting weaker auction clearance rates and a lagging listings volume of new homes.

In parallel, Blackstone secured A$36 billion (about US$25 billion) financing from Australia’s ANZ Group and National Australia Bank to purchase HSBC’s Australian residential mortgage and personal‑loan portfolio. The deal, announced on 31 July 2026, will transfer more than three decades of HSBC retail loans to Blackstone, with non‑bank lender Pepper Money handling day‑to‑day servicing. The transaction is expected to close in the first half of 2027, subject to regulatory approval, and reflects HSBC’s broader strategy of exiting low‑return retail banking markets in the region.