Australian Property Market in Mid-2026: Prices Turn Down
Australia's housing market has turned. National home values fell 0.4 per cent in June 2026, the largest month-on-month decline since December 2022, according to Cotality (formerly CoreLogic), whose national index peaked in March. Capital city values fell 1.3 per cent over the June quarter, led by Sydney and Melbourne.
The picture is far from uniform: Perth is still up 23.9 per cent over the year and Brisbane is still edging higher, while ABS data from the March quarter puts the mean Australian dwelling price at 1,111,100 dollars. Here is what the latest figures show, and what they mean if you are buying from overseas.
From first-quarter gains to mid-year falls
The shift happened quickly. Through the first quarter of 2026 values were still climbing, and the ABS reported the total value of Australia's 11.5 million dwellings rising by 315.9 billion dollars to 12,772.6 billion dollars in the March quarter. Cotality's index then peaked in March and slipped into decline, with June's 0.4 per cent national fall the sharpest since December 2022.
Cotality research director Tim Lawless points to affordability hurdles weighing on buyer demand, alongside cost-of-living pressures, weak sentiment and property taxation changes. Capital city sales volumes were down 16.2 per cent on a year earlier by mid-2026.
- National home values: down 0.4 per cent in June 2026 (Cotality)
- Combined capital city values: down 1.3 per cent over the June quarter
- Capital city sales volumes: down 16.2 per cent year on year
City by city: a split market
Sydney and Melbourne are driving the downturn. Sydney values fell 1.2 per cent in June and 3.2 per cent over the quarter, leaving them 3.7 per cent below their January 2026 peak. Melbourne dropped 1.0 per cent in June and 2.6 per cent over the quarter, and Canberra also declined.
The resource-state capitals are still rising, but more slowly. Perth added 0.7 per cent in June, well down from its average monthly pace of 2.5 per cent in the first quarter, though still 23.9 per cent higher over the year. Brisbane rose 0.3 per cent, down from a 1.9 per cent average monthly gain in the first quarter, and Adelaide was flat. Regional Australia overall rose 0.3 per cent in June, with regional Western Australia strongest at 3.7 per cent for the quarter.
- Sydney: -1.2 per cent in June, -3.7 per cent from its January 2026 peak
- Melbourne: -1.0 per cent in June, -2.6 per cent over the quarter
- Perth: +0.7 per cent in June, +23.9 per cent over the year
- Brisbane: +0.3 per cent in June; Adelaide flat; Canberra -0.6 per cent
- Regional Australia: +0.3 per cent in June, led by regional WA
What the ABS numbers say about price levels
ABS figures for the March quarter of 2026, published on 9 June, put the mean dwelling price at 1,111,100 dollars nationally, up 22,300 dollars on the previous quarter. New South Wales remains the most expensive state at a mean of 1,324,800 dollars, with Queensland at 1,123,700 dollars and Victoria at 947,100 dollars, a striking reversal of the traditional Sydney-Melbourne hierarchy given Melbourne's long stagnation since its March 2022 high.
Bear in mind the ABS series lags: it reflects the market before the mid-year falls. The June quarter release will be the first to capture the downturn.
- Mean dwelling price, March quarter 2026: 1,111,100 dollars (ABS)
- NSW mean: 1,324,800 dollars; Queensland: 1,123,700 dollars; Victoria: 947,100 dollars
- Total dwelling stock value: 12,772.6 billion dollars across 11,495,200 dwellings
Demand and supply signals favour buyers
Beyond headline prices, the transaction data points to growing buyer leverage. Auction clearance rates fell into the low 40 per cent range from late June, and the share of homes taken to auction dropped from nearly 45 per cent in November 2025 to just over 30 per cent in June 2026 as vendors switched to private sales. The median vendor discount across the combined capitals widened to 3.6 per cent.
Stock is building but not flooding: total advertised listings of about 131,400 in early July were 7.7 per cent higher than a year earlier yet still 3.5 per cent below the five-year average, while new listings were 6.2 per cent below average, suggesting many vendors are waiting rather than cutting prices hard.
- Auction clearance rates in the low 40 per cent range from late June
- Median vendor discount widened to 3.6 per cent across combined capitals
- Total listings up 7.7 per cent year on year, but still below the five-year average
What this means for overseas buyers
The falls are concentrated in Sydney and Melbourne, the cities where most foreign purchases of new builds happen, so buyers of off-the-plan property may find developers more open to negotiation than a year ago. Remember that foreign buyers remain limited to new dwellings, off-the-plan homes and vacant land while the ban on purchasing established dwellings runs to 30 June 2029, and approval fees apply on top of the price.
Conditions are moving month to month, so check the latest Cotality and ABS releases before acting. Habio's Australian area guides and listings can help you compare cities and track what is actually on the market.
Frequently asked questions
Are Australian house prices falling in 2026?
Nationally, yes. Cotality's home value index fell 0.4 per cent in June 2026, the largest monthly fall since December 2022, after peaking in March. But it is uneven: Sydney and Melbourne are falling while Perth and Brisbane were still rising modestly.
What is the average house price in Australia in 2026?
The ABS put the mean dwelling price at 1,111,100 dollars in the March quarter of 2026. New South Wales was highest at 1,324,800 dollars, with Queensland at 1,123,700 dollars and Victoria at 947,100 dollars.
Which Australian city has the strongest property market?
Perth, on the latest Cotality data, with values up 23.9 per cent over the year to June 2026, although its monthly growth slowed to 0.7 per cent. Regional Western Australia rose 3.7 per cent in the June quarter.
Is it a buyer's market in Australia right now?
Increasingly, in the biggest cities. Sales are down 16.2 per cent year on year, auction clearance rates dropped to the low 40 per cent range and the median vendor discount widened to 3.6 per cent, all signs of improved buyer negotiating power, though conditions vary sharply by city.
Can foreigners take advantage of falling Australian prices?
Only in part of the market. Foreign buyers can purchase new dwellings, off-the-plan homes and vacant land with ATO approval, but purchases of established dwellings are banned until 30 June 2029, with limited exceptions.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.