Australian home prices decline across capital cities amid rising interest rates

The short version

• Most Australian capital cities saw home prices fall over the winter, with Sydney recording the sharpest declines, according to Cotality data.
• The downturn is being driven by higher interest rates, elevated inflation, and shifting tax conditions for property investors.
• More affordable housing sectors have maintained value better than higher-end segments, supported by government low-deposit programs for first-time buyers.
• The depth and duration of the market cooling remain tied to future inflation trends and potential central bank rate increases.

Key facts

• Cotality data shows home prices fell across most Australian capital cities over the winter, led by declines in Sydney.[The Guardian]
• Suburbs that experienced the largest previous price increases have cooled the most quickly during the recent downturn.[The Guardian]
• Property values in Brisbane, Perth, and Darwin remain more than 10% higher over the past 12 months despite recent quarterly declines.[The Guardian]
• AMP described the recent downturn as a minor decrease following an approximate 50% rise in home values since the pandemic.[The Guardian]
• Higher mortgage repayments have reduced overall borrowing capacity, offsetting the affordability benefits of falling property prices for prospective buyers.[The Guardian]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Australia’s housing prices are trending down. See which suburbs have had the biggest fallsThe Guardian - World