Australian property prices fall across major capital cities

Australia is experiencing a significant downturn in the metropolitan property market, with house prices falling across all major capital cities. Recent data indicates that values across combined capital cities have declined by 4.6%, with a 3.7% drop recorded during the August quarter. Sydney has seen a 1.4% monthly decline, while Melbourne, Brisbane, Adelaide, and Perth have also recorded decreases.

Financial institutions are forecasting potentially record-breaking declines. CBA has predicted a peak-to-trough decline of 10% across the five major capital cities, while HSBC economist Paul Bloxham has revised his forecast to a 13% fall. These projections are driven by the prospect of further interest rate hikes by the Reserve Bank of Australia (RBA), which markets suggest could occur in September or November.

Despite falling prices and increased negotiability for vendors, buyer activity remains low. Prospective purchasers are reportedly staying on the sidelines due to high borrowing costs and the risk of further market declines. This has resulted in a buyer's market characterized by a lack of urgency and increased time taken to sell properties.