International

Australian Home Prices Fall Sixth Month: Sydney Down 9%

  • by- Grihik
  • Oct 7, 2026
Cotality says Australian home prices fell 1.1% in September, the sixth straight drop. Sydney is nearly 9% below its February peak.
Australian Home Prices Fall Sixth Month: Sydney Down 9%

New Delhi, October 7, 2026, Australian home prices fell for a sixth month in September, according to Cotality data reported by Reuters on October 1. The national index dropped 1.1% in the month, after a downwardly revised 1.2% fall in August.

Key numbers

  • National values: 5.2% below their peak and flat from a year ago

  • Sydney: down 1.4% in September and nearly 9% below its February peak, which is already a bigger fall than in the 2022-23 downturn

  • Melbourne: down 0.7%, now more than 7% off its peak

  • Brisbane, Adelaide and Perth: each fell more than 1%, giving back part of gains of 50% to 70% over the past five years

 

Sales are slumping too

Transaction volumes dropped further, and housing credit growth has started to slow. Reuters reported that government tax changes announced in May have cooled investor demand.

The rate backdrop

The Reserve Bank of Australia raised its cash rate by 25 bps to 4.60% on September 29, the highest since November 2011. The decision was unanimous, though a hold was considered, and Governor Michele Bullock said more hikes are possible if needed. NAB, for example, said it will pass on the full 0.25% to variable home loans from October 9.

How deep could it go?

Most economists expect a peak-to-trough fall of about 10% in this cycle, which would be the biggest downturn in three decades, Reuters said. That is a forecast, not a certainty.