Australia house prices see record quarterly decline

Australian capital city house prices have experienced their sharpest quarterly fall on record, with all major cities seeing declines simultaneously for the first time in 15 years. According to Domain data, national capital city house prices fell 4.7% during the September quarter, bringing the combined median to approximately A$1.23 million.

Perth recorded the most significant drop at 7.4%, followed by Brisbane with a 5.4% decline, which ended a nearly four-year growth period. Sydney prices fell 4.7%, while Melbourne saw a 3.3% decrease. Unit prices also weakened, dropping 3.5% across the combined capitals.

Economists attribute the downturn to several factors, including higher interest rates, reduced borrowing capacity, and weakened buyer confidence. The decline is being driven primarily by softening demand rather than an increase in listings. The weakness is particularly evident in the high-end market, where properties are more sensitive to borrowing costs.