Australian house prices fell a record 4.7 per cent over the September quarter, according to Domain data. Perth recorded the sharpest drop at 7.4 per cent, while Brisbane and Adelaide also logged their steepest falls on record. Housing Minister Clare O'Neill said the movement reflected the cyclical nature of the property market. Economists have largely linked the falls to the Reserve Bank lifting the cash rate to its highest level in 15 years. Domain's chief residential economist Nicola Powell said prices could keep falling for many months, with confidence unlikely to recover before an interest rate cut.
House prices have fallen 4.7 per cent, the steepest quarterly drop on record, according to new data from Domain. Prices fell in every capital city in the September quarter, the first time in 15 years. Perth recorded the sharpest decline at 7.4 per cent. Sydney and Melbourne posted their largest quarterly house price falls in four years. Property economists say lower demand, higher borrowing costs and cost-of-living pressures are driving the downturn, with more expensive homes falling the most.
Buyers and sellers in Canungra are taking a more cautious approach, with local agents saying the market is levelling out after its peak. Ray White sales consultant Kevin Blanc said buyers now have more power, though demand remains high. Median house prices reached $1.2 million for the 12 months to July 2026, up 13.2 per cent. Listings have also settled after a sharp rise in 2024, and families are moving from the Gold Coast to the town.
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Buyers are increasingly backing away from property deals as market conditions soften, according to the Real Estate Buyers Agents Association of Australia. Its president, Zoran Solano, said some buyers have withdrawn after verbally agreeing to terms or winning auctions. Some deals have collapsed just as contracts were close to signing, forcing agents to restart negotiations. Mr Solano linked the trend partly to buyers fearing they will overpay if prices keep falling. He pointed to rising vendor discounting, longer selling periods and more withdrawn listings as signs of change.
Buyers are backing out of home deals at the last minute as property markets cool, leaving vendors to relist their homes, according to the Real Estate Buyers Agents Association of Australia. REBAA president Zoran Solano said some deals have collapsed even after auctions, as buyers fear overpaying or prices falling further. Solano said collapsed sales can cost vendors momentum, extra marketing expenses and a stigma when a property returns to market. Westpac research found many Australians see now as a bad time to buy or sell, while InfoTrack reported buyers moving to regional areas as borrowing power weakens.
Expensive smart-home upgrades may add little to a property's sale price, according to a Melbourne real estate agent. Whitefox sales associate Cameron Greene said buyers rarely decide based on automated lighting or blinds, and that land size and build quality matter far more. Security features such as cameras and lockup garages, along with solar panels and batteries, can attract buyers. Telsyte research found 70 per cent of Australians believe AI could manage their smart homes better than they can, while more than three in five would feel uncomfortable with AI making decisions without their knowledge.
A delegation of 25 Indian food and agriculture companies visited Sydney from 5 to 7 October to promote their products. The visit was facilitated by the Consulate General of India and led by the Federation of Indian Export Organisations. Events included a buyer-seller meet, warehouse visits and a networking meet with Western Sydney importers. Organisers said the visit was expected to help increase Australian imports of Indian food and agricultural products, though any growth depends on the outcomes of the meetings.
Property values fell in 420 of 462 metropolitan Adelaide suburbs over the past quarter, according to realestate.com.au data. Kent Town units recorded the largest drop, falling 11 per cent to $774,415. Ray White Semaphore's Kate Smith said buyers may find this a good time to buy, with subject-to-sale offers returning for the first time in five to six years. Regional values fared better, with 37 of 65 towns recording growth. Harcourts Packham Property's James Packham said the Reserve Bank's recent rise to 4.60 per cent had changed the market and advised buyers to check their pre-approval.
