Australian home values fall 8.1% in fastest slump in 40 years
Capital city home values fell 8.1% since March, marking the fastest four-decade decline as interest rate hikes scare off buyers.
Australian homes dropped for a seventh consecutive month in October, falling at their quickest pace in four decades, Cotality data shows. The downturn centre is shifting from Sydney and Melbourne toward Brisbane, Perth and Adelaide, where virtually every suburb has fallen over the past three months.
Combined capital city values fell 1.4% in October alone. Interest rate increases this year have spooked the market most, with economists forecasting up to 15% peak-to-trough falls.
Affordability stress and recent tax changes on investors have also dented demand. Most homeowners still sit on substantial gains from the past decade, when prices doubled or nearly doubled in Adelaide, Brisbane, Perth and Hobart.
Rental pressures have eased slightly, with vacancies rising, though rents remain up more than 50% over six years, adding about $245 per week to typical rent.
- 8.1%
- Fall since March
- 7
- Consecutive months of decline
- 1.4%
- October monthly fall
- Up to 15%
- Morgan Stanley forecast peak-to-trough
Why it mattersFalling property values reduce household wealth and may affect investment decisions, though most homeowners remain in gain overall.
AustraliaAustralian homeowners face lower property values, while buyers finally see some price relief after a decade of extreme unaffordability.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
