House prices are now falling in four of Australia's capital cities, with Sydney values dropping by A$48,000 since the start of the year, according to data from Cotality released on Wednesday. The Sydney and Melbourne markets recorded their biggest one-month decline since August 2022, falling 1.2% and 1% respectively.
Melbourne's median prices are now A$7,000 below where they were in June 2025, while Canberra prices are A$8,000 below January levels but still A$25,000 higher than a year earlier. The Adelaide market, which had risen for 15 consecutive months including a 15.4% annual gain, began to slide in the second half of June.
Interest rate rises and tax reforms have weighed on housing demand. The Reserve Bank left rates unchanged in June, minutes of its meeting show. More than half of homes taken to auction are not selling, with national clearance rates below 50% since the end of May.
Ray White's chief auctioneer for Victoria and Tasmania, Luke Banitsiotis, said buyers were still attending auctions but many sellers were unwilling to drop prices. 'You are still able to sell at a different price point than you were able to do two months ago,' he said. He noted that homes under A$1m were selling quickly but higher-priced properties faced a 'hard slog.'
Markets also stalled in Perth and Brisbane, where annual price rises slowed dramatically in June. Cotality did not predict a sharp correction, stating that 'the most likely path from here is a further loss of momentum and a gradual drift lower.'
