Brisbane agent Heath Williams says buyers are competing hard for homes with character that cannot be replicated, even as the wider market shifts. A former hospital outbuilding at 24 Brisbane St, Annerley, sold for a suburb-record $4.45 million after being converted by architect Ric DeLuca. A riverfront Queenslander at 66 Yeronga St, Yeronga, sold for $6.25 million, and Triangle House at 1 Sherman St, The Gap, sold for $1.415 million. More than 60 groups inspected a Paddington home at 61 Beck St at its first open home, where offers close on November 11.
Home prices in many Australian suburbs have grown sharply since 2011, when interest rates were last this high. Analysis of realestate.com.au data shows the largest gains, with New South Wales and Queensland accounting for eight of the top ten house-price performers. The median sale price in Pokolbin, in the NSW Hunter Valley, is up 417% on 2011. Realestate.com.au senior economist Anne Flaherty says households now spend a much larger share of their income on housing. The Reserve Bank has raised the cash rate to 4.6%, and home prices are now 3.3% below their March 2026 peak.
Regional home values rose 5.6 per cent over the year to September, while capital city values fell 1.8 per cent, according to a Cotality report. Perth and Darwin recorded gains above 10 per cent, but falls in Sydney and Melbourne pulled the capital average down. Property sales in September dropped 20.9 per cent on the same month last year. Cotality research director Tim Lawless said higher interest rates and fears of further price falls were making some buyers hesitant.
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Melbourne's lowest-priced homes have gained value faster than the rest of the market over the past 12 months, according to Real Estate Institute of Victoria data. Mornington led the rise, with its bottom quarter of sales up 12 per cent to a typical $920,000. Overall, the city's median house and unit prices fell 0.7 per cent in the September quarter, with steeper falls in affluent inner suburbs. REIV chief executive Toby Balazs linked part of the squeeze to a federal scheme offering 5 per cent deposits and landlords selling rental homes.
Investor activity in the housing market has pulled back after strong results in 2024 and 2025. Rising interest rates and changes to housing taxes in the May federal budget have reduced demand for established homes, while new builds have drawn more investor interest. National home prices have fallen for six consecutive months, down about 3.3% from their peak. Sydney and Melbourne have seen larger falls, while Brisbane, Perth and Adelaide have declined more modestly. PropTrack expects prices to keep falling through 2026, with a possible further rate rise adding pressure.
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.
Nine in 10 Queensland suburbs fell in value during the September quarter, according to realestate.com.au data. Some homeowners lost up to $244,000 in three months. Only Ascot and Coochiemudlo Island in Greater Brisbane avoided the downturn. Ray White economist Atom Go Tian linked the falls to the federal budget, saying investors have pulled back and first home buyers and owner occupiers have followed. Brisbane's median house price also fell, with St Lucia recording the largest dollar loss. Realestate.com.au economist Luc Redman pointed to four interest rate rises this year and tax changes.
