Australia's Housing Market Enters Downturn Amid Higher Rates and Tax Reforms

Australia's housing market is experiencing a sharp downturn after years of rapid growth.

The total value of Australia's 11.5 million homes increased by 87% this decade to A$12.8 trillion, but house prices have begun to decline in major cities like Sydney and Melbourne.

Higher borrowing costs and tax reforms targeting property investors are contributing to the fall in demand for housing, with auction clearance rates weakened and mortgage applications slowed.

The Reserve Bank of Australia raised interest rates three times this year, increasing mortgage repayments for borrowers and reducing their borrowing capacity.