Australian House Prices Fall for Sixth Consecutive Month
Australian home values dropped 1.1 per cent in September as higher interest rates and tax cuts drive a broad market downturn.
Australian house prices fell for the sixth consecutive month in September, with the Cotality Home Value Index recording a 1.1 per cent national decline. Brisbane experienced the sharpest monthly drop at 1.5 per cent, followed by Sydney at 1.4 per cent and Melbourne at 0.7 per cent. Darwin was the only capital city to avoid a decline, posting a 0.4 per cent increase.
Market analysts attribute the downturn to higher interest rates from the Reserve Bank of Australia and government reductions in housing tax breaks. National home sales have decreased 19.1 per cent compared to the previous year, while the national rental vacancy rate rose to 2 per cent in September.
Industry experts warn of further instability. Some predict national peak-to-trough price falls of 10 to 15 per cent continuing into 2027. Economists suggest that while rates may have peaked, geopolitical instability or rising oil prices could push price drops to 20 per cent, potentially triggering a recession. Additionally, developers warn that continued rate hikes and tax changes could lead to a surge in construction bankruptcies.
