Australia’s Housing Downturn Spreads

Australia’s housing market lost further momentum in July, with Cotality’s national Home Value Index falling 0.7%, its largest monthly decline in more than three years.

Sydney and Melbourne remained the weakest major markets, with home values falling 1.4% and 1.2% respectively during the month.

However, the slowdown is becoming more widespread. Brisbane declined 0.6%, while Adelaide fell 0.2%, with both cities recording two consecutive months of falling values following historical revisions.

Perth showed a small 0.1% monthly increase, although its June result was revised to a 0.5% decline, signalling how quickly conditions have shifted from the city’s earlier growth phase. 

Premium Homes Feel More Pressure

The correction has been particularly noticeable at the higher end of the market.

Values in the upper quartile fell 3.2% over the three months to July, compared with a 0.3% gain among lower-value properties.

Several factors are weighing on demand, including affordability constraints, three cash-rate increases and weak consumer confidence. At the same time, advertised housing supply has increased.

Capital-city auction clearance rates have remained below 50%, suggesting buyers and sellers are still struggling to agree on pricing.

Outlook

Australia’s housing market is likely to remain price-sensitive and uneven across cities and property segments in the near term.

With higher-value homes experiencing the greatest pressure, buyers may gain greater negotiating power in selected markets. For homeowners and investors, conditions will require closer attention to local demand, pricing and affordability rather than relying on broader national trends.

The contents of this article were contributed by Lily Chong, Head of IQI Australia.

The post Australia Housing Market September 2026: Downturn Broadens Across Major Capitals appeared first on IQI Blog.

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.

The post Australia Property Market Cools as Buyers Gain More Choice in 2026 appeared first on IQI Blog.

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.

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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.

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Australian home values continued their upward trend in January, rising 0.8% nationwide, according to Cotality’s Home Value Index. This marks a modest acceleration from December’s 0.6% increase and highlights the market’s resilience despite affordability pressures.

All capital cities and regional markets recorded price growth during the month. However, results were mixed acrosst the major capitals. Sydney (+0.2%) and Melbourne (+0.1%) posted only modest gains, following slight declines in December. Both cities remain just below their peak values, with Sydney sitting 0.1% below its November 2025 high and Melbourne 0.7% below its March 2022 peak.

Mid-sized capitals continue to lead the market, though momentum is easing. Perth recorded the strongest growth at 2.0%, followed by Brisbane (+1.6%) and Adelaide (+1.2%), all slightly slower than their late-2025 peaks.

Cotality’s Research Director, Tim Lawless, noted that price growth remains supported by severely limited housing supply, with listings 19% lower than a year ago and 25% below the five-year average, while buyer demand remains above average. However, he expects market momentum to soften through 2026 as affordability constraints, cost-of-living pressures, potential interest rate increases and slower population growth begin to weigh on demand.

At the same time, growth is being driven largely by lower-priced homes, particularly houses. Across the combined capitals, lower-quartile house values rose 1.3% in January, compared with just 0.3% growth in the upper quartile, reflecting intense competition among first home buyers, investors and value-focused buyers.

Overall, the market remains resilient, but signs are emerging that the pace of growth may gradually moderate as economic pressures build.

For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today.

The post Australia’s Home Values Climb 0.8% in January as Supply Shortages Support Growth appeared first on IQI Blog.

Australia’s housing market delivered solid gains in 2025, with national home values rising 8.6%, adding around $71,400 to the median dwelling price, the strongest annual growth since 2021.

All capital cities and regional markets recorded increases, led by Darwin (+18.9%), while Melbourne saw the smallest rise at 4.8%.
However, momentum began to cool in December, when the national Home Value Index recorded its smallest
monthly gain in five months (+0.7%).

Sydney and Melbourne both declined by -0.1%, marking the first monthly fall in over a year. Cotality’s research director Tim Lawless attributes this softening to renewed concerns that interest rates may remain “higher for longer”, along with worsening affordability and cost-of-living pressures.

Growth has increasingly been driven by the lower and middle segments of the market, as affordability pressures continue to steer buyers away from higher-priced homes. Upper-quartile values rose just 0.2% in December, compared with 1.1% growth in the more affordable segments.

Regional markets remain more resilient, posting 9.7% growth for the year, outperforming the combine capitals at 8.2%. Western Australia’s regions (+16.1%) and regional Queensland (+12.6%) were the standout performers.

Outlook for 2026 While 2025 closed strongly, the outlook for 2026 is more cautious. Uncertainty around inflation, interest rates, affordability and household debt is expected to weigh on confidence. That said, ongoing housing supply shortages should help prevent any significant downturn in home values.

For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re
considering selling, buying, or investing, now is the time to explore your options. Contact our team at
sales@iqiwa.com.au to discuss your property goals today.

The post Housing Market Snapshot: Strong 2025, Softer Outlook for 2026 appeared first on IQI Blog.

Written by Lily Chong, Head of IQI Australia 

Australia’s housing market posted another month of solid momentum, with Cotality’s national Home Value Index rising 1.0% in November. This marks the third consecutive month where home values have climbed by one per cent or more. Although the pace has eased slightly from October’s 1.1% rise, the overall trend remains positive, signalling resilient buyer demand in the face of broader economic uncertainty. 

Perth Leads the Nation 

Perth continues to outperform all other capitals, recording an impressive 2.4% rise in dwelling values for November. Extremely low levels of stock—sitting more than 40% below the long-term average—combined with elevated buyer activity have created strong upward pressure on prices. This monthly growth alone added over $21,000 to the median dwelling value, equating to around $5,000 per week. Once again, Perth highlights the growing divergence between mid-sized capitals and Australia’s larger, more supply-balanced markets. 

Mixed Results in Sydney & Melbourne 

Sydney and Melbourne delivered more modest results, rising 0.5% and 0.3% respectively. These softer gains reflect increased affordability constraints, with prices already sitting at historically high levels, limiting further upward movement. Sydney’s supply levels are only slightly below its five-year average, meaning the city does not face the same supply shortages driving stronger growth elsewhere. Importantly, Sydney’s monthly growth rate appears to have peaked back in August at 0.9%, suggesting the city may be entering a more stable phase. 

Affordability Pressures Continue to Build 

Housing affordability remains a key challenge nationally. Cotality’s latest metrics show the median dwelling value is now 8.2 times higher than the annual household income—its most stretched level on record. At the same time, mortgage serviceability has climbed to 45% of household income, making it increasingly difficult for new buyers to secure finance. Auction clearance rates have also softened since mid-September, drifting below the decade average by mid-November, particularly in Sydney and Melbourne where clearance rates have held in the low 60% range. 

Market Outlook 

Looking ahead, the combination of persistent inflation and expectations that interest rates will remain elevated for longer is likely to influence buyer sentiment. With affordability challenges deepening, fewer buyers may be able to borrow at the levels required to keep pace with rising prices. Recent trends also indicate that lower-priced segments of the market are seeing the strongest value growth across most capitals, as buyers adjust to tighter lending conditions. Melbourne is the key exception, where the middle of the market is currently experiencing the fastest uplift. 

For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today. 

Source: Cotality Research, December 2025 

The post Australia’s Housing Market Maintains Momentum as Perth Leads Price Growth appeared first on IQI Blog.

Written by Lily Chong, Head of IQI Australia

Australia’s housing markets are gathering strong momentum as we head deeper into spring, with September delivering the sharpest monthly rise in national dwelling values since October 2023. The Cotality Home Value Index (HVI) lifted 0.8% over the month, driven by a solid 0.9% gain across the capital cities. 

On a quarterly basis, national dwelling values rose 2.2% in the September quarter—up from 1.5% in June and more than double the 1.1% growth in March. In dollar terms, this equates to an $18,215 increase in the median dwelling value over just three months. 

Growth remains broad-based, with every capital city and regional market recording gains over the month, quarter, and year. However, the pace of growth is again showing clear divergence: 

• Perth (+4.0%) and Brisbane (+3.5%) led the capitals through the September quarter, supported by strong unit market demand. 

• Darwin (+5.9%) surged ahead, marking the fastest quarterly growth rate of all capitals. 

• Most cities are still seeing stronger gains in house values, though Brisbane, Perth and Hobart stand out with unit prices outpacing houses due to ongoing supply shortages. 

According to Cotality’s Research Director, Tim Lawless, supply constraints are driving much of this momentum: 

• Darwin listings are 53% below average 

• Perth listings are 45% below average 

• Brisbane listings are 31% below average 

At the same time, quarterly sales activity is running above average, highlighting the mismatch between supply and demand. Across value segments, the lower and middle tiers are now leading the upswing. September quarter growth was strongest in the middle of the market (+2.7%), followed by the lower quartile (+2.6%), while the upper quartile rose 1.8%. This shift suggests that improved borrowing capacity is supporting buyers at slightly higher price points. 

Advertised stock levels remain tight, with capital city listings sitting 18% below the five-year average at the end of September. Meanwhile, sales activity was 7.3% above average, adding further fuel to the market. 

Selling conditions have strengthened noticeably, with auction clearance rates holding around 70% since mid-August—well above the average levels seen earlier in the year (63% in June and 62% in March). 

Source: Cotality 

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written by Lily Chong, Head of IQI Australia

Cotality’s national Home Value Index (HVI) rose 0.7% in August, marking the strongest monthly gain since May last year and lifting annual growth to 4.1%.

The upswing has been building since the February rate cut, driven by improved borrowing capacity, rising buyer confidence, real wage growth, and limited advertised stock.

“There’s a clear mismatch between supply and demand, which continues to push housing values higher,” said Tim Lawless, Cotality Australia’s research director.

Key Highlights

• Strong vendor position: Auction clearance rates hit 70% in late August, the highest since February last year.
• Tight supply: Advertised stock levels remain about 20% below average, giving sellers an advantage despite a slight seasonal increase in new spring listings.
• Sustainable growth expected: While prices are rising, affordability constraints, cautious lending, and slower population growth are likely to keep growth more measured compared to the rapid surges seen during the pandemic.

Perth Market Performance
Perth continues to be one of the strongest-performing capital cities, with housing values rising 1.1% in August, outpacing the national average. Alongside Brisbane (+1.2%) and Adelaide (+0.9%), Perth remains a frontrunner in monthly gains.

Low advertised stock, strong buyer demand, and attractive affordability compared to other capitals are contributing to Perth’s sustained growth momentum.

Perth Rental Market
Perth’s median dwelling rent stayed stable at $680 per week in August, 4.6% higher than last year.

• Houses: Up 2.2% over the month to $700 per week (7.7% YoY increase).
• Units: Stable at $650 per week, up 4.6% YoY.

While rents remain elevated, experts note this is a seasonal trend as rental demand typically tightens towards the end of the year. However, there’s no broad surge in prices, with many landlords keeping new lease and renewal increases modest.

Source by Cotality & Reiwa

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Australia’s housing market continued its winning streak in July, recording a 0.6 per cent rise in national values and extending six straight months of growth. The upswing is being fuelled by low supply, improved buyer sentiment, and easing interest rates, although affordability remains a challenge.

Darwin led the charge with a 2.2 per cent increase, while Perth saw its strongest gain since 2023 at 0.9 per cent. All capital cities recorded growth, with houses outperforming units and pushing the price gap to a record $223,000. Over the quarter, dwelling values climbed 1.8 per cent, the highest in more than a year.

With listings nearly 20 per cent below average and auction clearance rates staying strong, tight supply continues to favour sellers. As demand holds firm, those who act strategically can still achieve premium results in a competitive market.

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