House prices slide across Australia as Middle East conflict and tax changes begin to bite
News Source
β’Sun, 02 Aug 2026 14:01:23 GMT
π° What Happened
New Cotality data reveals that house prices have fallen across most of Australia since May, with Brisbane, Adelaide, and Perth all experiencing declines. Brisbane's median price dropped approximately $8,000 from its peak, ending a historic 40-month growth streak since February 2023. The national median home price now sits at $928,000 β about $19,000 below its March peak. Sydney and Melbourne have seen significant drops of $69,000 and $39,000 respectively since February, while regional Australia experienced its first overall decline since January 2023.
π The Backstory
The Australian housing market had experienced prolonged price growth fueled by low interest rates, population growth, and limited supply. The downturn is being attributed to the Middle East conflict creating economic uncertainty, as well as tax changes affecting the market. This represents a significant shift after years of seemingly unstoppable price increases in most capital cities.
π― Why It Matters
The price decline could improve housing affordability for first-home buyers who have been locked out of the market, but it also risks negative equity for recent purchasers and could slow construction activity. The geographic spread of the downturn β now affecting previously resilient markets like Brisbane, Adelaide and Perth β suggests broader economic headwinds rather than localised corrections.
New Cotality data reveals that house prices have fallen across most of Australia since May, with Brisbane, Adelaide, and Perth all experiencing declines. Brisbane's median price dropped approximately $8,000 from its peak, ending a historic 40-month growth streak since February 2023. The national median home price now sits at $928,000 β about $19,000 below its March peak. Sydney and Melbourne have seen significant drops of $69,000 and $39,000 respectively since February, while regional Australia experienced its first overall decline since January 2023.
The Australian housing market had experienced prolonged price growth fueled by low interest rates, population growth, and limited supply. The downturn is being attributed to the Middle East conflict creating economic uncertainty, as well as tax changes affecting the market. This represents a significant shift after years of seemingly unstoppable price increases in most capital cities.
The price decline could improve housing affordability for first-home buyers who have been locked out of the market, but it also risks negative equity for recent purchasers and could slow construction activity. The geographic spread of the downturn β now affecting previously resilient markets like Brisbane, Adelaide and Perth β suggests broader economic headwinds rather than localised corrections.