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.
Morgan Stanley now expects national house prices to fall 10 to 15 per cent from their peak, with a trough in the second half of 2027. The bank said this would be Australia's largest nominal housing downturn in over 40 years. Dwelling prices have already dropped 5.2 per cent since March, according to Cotality. Higher construction costs, rising unemployment risks and a slower building pace are also weighing on the sector. Construction costs rose 3.2 per cent in the 12 months to September, with plastics prices driven up by fuel costs.
Tasmania's whisky industry is facing its biggest challenge since the state was governed by colonial law. A global downturn has led some distillers to pause production and lay off staff. McHenry Distillery at Port Arthur has let staff go and cut back distilling, while others are expanding. Some medium-sized distilleries argue the federal alcohol excise remission scheme is limiting their growth. Lark Distillery co-founder Bill Lark says the industry has faced highs and lows before and sees opportunities ahead.
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House values fell in 82.2 per cent of suburbs nationwide over the past three months, according to realestate.com.au figures. Unit values dropped in 79.7 per cent of suburbs with available data. Analysts blamed a combination of interest rate rises, war abroad and federal tax reforms. Queensland, Melbourne, Sydney, Hobart and Adelaide all recorded widespread falls, with only a small number of suburbs showing growth.
