Australia’s property slump may deepen as values face prolonged falls
Australia's housing market is experiencing a significant downturn, with national property values falling 1.1 per cent in September and 5.2 per cent since the March peak. Economists warn that this decline could be only one-third of the way through, with some forecasting total falls of 13-15 per cent by mid-2027, making this potentially the worst correction in 40 years.
Brisbane overtook Sydney as the city with the steepest monthly fall at 1.5 per cent, whilst Sydney values have fallen 8.6 per cent from their February peak, with the median dwelling value now at $899,236. The downturn is being driven by rising interest rates and the government's tax changes on property investors, which aim to improve affordability for first-home buyers; over 102,000 first-home buyers have already used the expanded five per cent deposit scheme, and 97 per cent of capital city suburbs have declined in value over the past three months.
- House prices fell 5.2 per cent since March; economists warn of further significant declines.
- Brisbane and Sydney lead price declines as median home value falls.
- Government tax changes and five per cent deposit scheme aim to help first-home buyers.
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Australia's property market is experiencing significant decline, with values falling across major cities at rates not seen in 40 years. This matters because millions of Australians own homes or investment property, so a major downturn directly affects household wealth and financial decisions.
Rising interest rates have made mortgages more expensive, whilst the government has changed property taxation to improve housing affordability for first-time buyers. These economic and policy shifts are the main drivers of the current downturn.
Homeowners are watching their asset values fall, property investors are reconsidering their strategies, and first-time buyers are navigating an increasingly uncertain market. Cities across the country are experiencing the downturn at varying rates.
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Originally published by Daily Mail as “Australia’s housing crash could be the worst in 40 years – and experts warn prices may have only fallen a third of the way”.