Home values plummet as downturn grips Australia’s capital cities
Australia’s property market has taken another beating, with almost every capital city suburb plunging in value over the past three months.
Cotality’s latest Home Value Index shows national dwelling values fell 1.1 per cent in September, marking a sixth consecutive monthly fall.
Almost every capital city suburb plunged in value over the past three months. nna\joshua.buchwald
Homes are now worth 5.2 per cent less nationally than at their March peak.
Brisbane recorded the biggest monthly fall among the capitals, with values down 1.5 per cent in September, narrowly ahead of Sydney’s 1.4 per cent drop.
Darwin was the only capital to buck the trend, with values rising 0.4 per cent.
Cotality research director Tim Lawless said losses were now being recorded across virtually every corner of the capital city market.
“97 per cent of capital city suburbs were down in value over the three months to the end of September, highlighting the broad-based scope of this negative housing cycle,” he said.
Sydney remains one of the hardest-hit markets, with home values now 8.6 per cent below their February peak.
Melbourne values dropped another 0.7 per cent in September and are now 7.2 per cent below their November 2025 high.
Capital city homes now take a median of 39 days to sell, up from 23 days a year ago. Getty Images/iStockphoto
Adelaide fell 1.3 per cent, Perth was down 1.2 per cent, and Canberra lost 1.1 per cent.
Despite their recent falls, Perth and Brisbane remain above where they were a year ago, with annual gains of 10.1 per cent and 5.9 per cent respectively.
Darwin has recorded the strongest annual result at 11.9 per cent, while Sydney is down 7 per cent and Melbourne has lost 6.2 per cent over the year.
The figures come after the Reserve Bank lifted the cash rate by another 0.25 percentage points on Tuesday, taking it to 4.6 per cent after four increases this year.
Canstar estimates the four hikes have cut the borrowing capacity of someone earning the average full-time wage of $108,650 by about $47,400 since the start of the year.
As for the market, the slowdown is also showing up in the number of homes being sold.
The national median dwelling value stood at $899,236 at the end of September. iStock
Cotality estimates sales over the past three months were 19.1 per cent lower nationally than a year ago, with Brisbane recording the biggest fall at 27.2 per cent.
Sydney sales were down 26.5 per cent, and Perth was down 24.2 per cent.
Buyers are also facing far more choice as unsold properties accumulate.
Total advertised stock across the capitals was 23.1 per cent higher than a year ago, despite 9.2 per cent fewer new listings coming onto the market.
Capital city homes now take a median of 39 days to sell, up from 23 days a year ago.
“The lift in available stock is improving choice for buyers, but ironically, many prospective buyers don’t have the confidence or financial capacity to buy at the moment,” Lawless said.
Cotality expects values to continue falling into 2027 as higher rates weigh on demand, although limited housing supply and a resilient labour market are expected to help contain the downturn.
The national median dwelling value stood at $899,236 at the end of September.
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