What happened
Cotality data showed national average home prices fell 0.9% in August, marking five consecutive monthly drops and taking the total decline from peak levels to 3.6%. Capital city prices dropped 1.1% for the month, driven by interest rate increases and reduced investor demand following budget tax changes.
Why it matters here
Forecasts project total top-to-bottom national price declines of 10%, with Sydney capital city prices expected to fall 13%. Reduced property wealth suppresses consumer confidence, while changes to negative gearing and capital gains tax rules continue to deter residential real estate investors.
What to watch
Track Cotality monthly property index reports and upcoming RBA rate decisions through late 2026 to gauge the duration of the downturn.
Source
peninsulawealth.com.au