Australian Housing Market Downturn Expands to Nearly All Capital City Suburbs

Australia's housing market continues to decline, with 93% of capital city suburbs recording price falls over the past three months. The national index has dropped 0.9% in August, leaving it 3.6% below its March peak.

Sydney led the downturn, with a 1.4% monthly drop and is now 7.1% below its February high, outpacing the 2022-23 correction. Melbourne, Canberra, and Brisbane each fell at least 1%, while Adelaide and Perth slipped 0.8%. Only Darwin avoided a quarterly decline.

The Reserve Bank of Australia has raised rates to 4.35% and markets expect another hike, while government tax changes have cooled investor appetite, pointing to continued pressure on the housing sector. Tim Lawless, Cotality's research director, said: 'What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.'