Australia’s Housing Market Enters a Cooling Phase Australia’s housing market shifted in June 2026, with the national Home Value Index falling 0.4% month-on-month. This was the largest monthly decline recorded since December 2022. Sydney experienced the sharpest correction, with dwelling values falling 1.2%, followed by Melbourne at 1.0% and Canberra at 0.6%. Adelaide remained unchanged, while Brisbane and Perth continued to grow by 0.3% and 0.7%respectively. Over the June quarter, national dwelling values declined 0.7%, while combined capital city values fell 1.3%. The slowdown was mainly driven by weaker buyer demand and growing affordability pressures.  Market Conditions Become More Buyer-Friendly Higher interest rates, cost-of-living pressures, cautious buyer sentiment and recent property tax changes have contributed to softer market conditions. Auction clearance rates across the combined capital cities have remained below 50% since late May. Capital city sales volumes were also estimated to be 16.2% lower year-on-year. Meanwhile, advertised listings increased by almost 11% compared with the previous year. This has given buyers more options, reduced urgency and placed greater pressure on sellers to set realistic asking prices. Despite the national slowdown, market performance remains uneven. Perth recorded the strongest annual growth among the major capital cities at 23.9%, while Brisbane increased 17.4%, highlighting continued demand in selected markets. Outlook Australia’s housing market is likely to remain more balanced and selective in the coming months. Buyers may benefit from wider choice and improved negotiating power, while sellers will need to align pricing expectations with changing demand. Markets with stronger population growth, affordability and supply fundamentals, particularly Perth, may remain more resilient than Sydney and Melbourne. Download to see insights from other country marketsDownload

Australia Housing Market Slows in May 2026 Australia’s housing market showed clearer signs of slowing in May, with Cotality’s national Home Value Index remaining flat. The data suggests that momentum is easing across most regions as buyers face affordability pressure, tighter borrowing capacity and broader demand-side challenges. The slowdown was most visible in Sydney and Melbourne, where dwelling values fell by 0.9% and 0.8% respectively over the month. Both cities are now below their recent market peaks recorded in November last year. The ACT also softened slightly, with values down 0.2%. However, the market remains highly uneven. Perth and Darwin recorded the strongest monthly gains at 1.5%, followed by Brisbane and Hobart at 0.9%, and Adelaide at 0.5%. Cotality Research Director Tim Lawless noted that Australia’s housing market is moving at different speeds. Over the past five years, Perth home values surged 91.4%, while Melbourne rose only 3.3%, highlighting the gap between stronger and weaker city markets. Sales activity is also cooling. National home sales over the past three months were estimated to be 2.2% lower year-on-year and 4.1% below the five-year average. Sydney and Melbourne recorded the sharpest annual falls in sales, down 17.0% and 14.2% respectively. Outlook Looking ahead, Australia’s property market is expected to remain selective rather than broadly weak. Cities with stronger population growth, tighter supply and better affordability may continue to outperform. For buyers, rising listings and softer auction clearance rates could create more room to negotiate. For sellers, realistic pricing will be increasingly important as market conditions become more balanced. Juwai IQI Newsletter July 2026 RDownload

Australia’s housing market has entered 2026 with a clear split in performance across cities. While Sydney and Melbourne have begun to stabilise, mid-sized capitals continue to record solid growth, with several markets achieving more than 1% month-on-month increases. Perth Perth is leading the nation, with home values rising 2.3% in February alone, adding significant value to the median dwelling in just one month. Brisbane, Adelaide and Hobart also posted strong gains, reinforcing the growing strength of these markets as demand shifts beyond the traditional major cities. Sydney and Melbourne In contrast, Sydney and Melbourne were more sensitive to February’s rate hike and softer buyer sentiment. Property values in both cities remained flat over the month and showed slight declines over the rolling quarter, reflecting a more cautious market environment. A key factor supporting growth in the smaller capitals is limited housing supply. Perth listings remain significantly below historical averages, while Brisbane and Adelaide are also experiencing notable undersupply. Although stock levels in Sydney and Melbourne are still relatively tight, both cities have seen an increase in new listings, which may signal rising vendor activity amid softer conditions. At the same time, the more affordable end of the market continues to show resilience nationwide. In Sydney, lower-priced homes recorded modest growth, while higher-end properties declined. Ongoing demand from first-home buyers and investors, combined with tighter borrowing capacity at higher price points, continues to support entry-level segments. Overall, Australia’s property market is becoming more selective in 2026. For investors and homeowners, markets like Perth are presenting compelling opportunities, driven by strong growth, affordability, and supply constraints. As Australia’s property market shifts, opportunities are becoming more location-driven than ever. Whether you are exploring high-growth markets like Perth or reassessing your strategy in major cities, now is the time to make informed decisions. Connect with our team at sales@iqiwa.com.au to discover where the real opportunities are and take your next step with confidence. Download to see insights form other country marketsDownload