High-end property hit by steepest price falls as affordable end of Australia’s housing market proves resilient
News Source
•Wed, 09 Sep 2026 14:01:00 GMT
📰 What Happened
Australia's housing market is going through a rare price correction, and the most expensive homes are falling fastest. New data shows upper-quartile house values in Sydney and Melbourne are down more than 10 per cent from their peaks. In Sydney, that means homes worth $2.1 million and above.
Cheaper homes are holding up better. The gap between top and bottom is biggest in Sydney and Melbourne. Perth, Adelaide and Brisbane saw smaller, more even falls over winter. Analysts say parts of the market are starting to stabilise as investors leave and first-time buyers step in.
🔍 The Backstory
Australian house prices climbed for years, making homes among the least affordable in the world. Then higher interest rates and government tax changes cooled the market. Gerard Burg of Cotality says expensive homes in Sydney, Melbourne and Canberra turned first and have fallen the most.
Price falls feel very different depending on where you live. Owners of luxury homes are losing the most money. Buyers at the cheaper end are finally finding room to move. Analysts describe the correction as widespread but uneven, with the pain landing hardest at the top of the market.
🎯 Why It Matters
House prices shape the biggest financial decision most families ever make. Steep falls at the top can help first-time buyers, while cheaper homes keep the dream alive. Where prices go next affects mortgages and rent for millions.
Australia's housing market is going through a rare price correction, and the most expensive homes are falling fastest. New data shows upper-quartile house values in Sydney and Melbourne are down more than 10 per cent from their peaks. In Sydney, that means homes worth $2.1 million and above.
Cheaper homes are holding up better. The gap between top and bottom is biggest in Sydney and Melbourne. Perth, Adelaide and Brisbane saw smaller, more even falls over winter. Analysts say parts of the market are starting to stabilise as investors leave and first-time buyers step in.
Australian house prices climbed for years, making homes among the least affordable in the world. Then higher interest rates and government tax changes cooled the market. Gerard Burg of Cotality says expensive homes in Sydney, Melbourne and Canberra turned first and have fallen the most.
Price falls feel very different depending on where you live. Owners of luxury homes are losing the most money. Buyers at the cheaper end are finally finding room to move. Analysts describe the correction as widespread but uneven, with the pain landing hardest at the top of the market.
House prices shape the biggest financial decision most families ever make. Steep falls at the top can help first-time buyers, while cheaper homes keep the dream alive. Where prices go next affects mortgages and rent for millions.