Australian housing market records biggest monthly fall in three years
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Australia’s housing market slowdown is spreading, with home values recording their largest monthly decline in more than three years.
Property data firm Cotality reported national dwelling values fell 0.4 per cent in June, led by sharp drops in Sydney (-1.2 per cent) and Melbourne (-1 per cent).
Brisbane and Perth continued to grow but at a much slower pace, while Adelaide remained unchanged, showing weaker momentum across most capital cities.
Cotality research head Gerard Burg said rising costs, higher interest rates, weaker buyer confidence and recent tax changes had combined to put pressure on the market.
He said affordability challenges were already affecting demand before the Reserve Bank’s latest rate increases added further pressure.
The national market is now estimated to have peaked in March, with values falling 0.7 per cent over the June quarter.
Other market data also showed declines, with PropTrack recording a 0.3 per cent fall in June, marking the third consecutive monthly drop.
Despite the downturn, some markets remain supported by limited housing supply. Brisbane, Perth and Adelaide continue to have fewer homes available for sale, helping prevent a major price correction.
Sydney and Melbourne, however, are facing greater pressure as more properties enter the market and buyers become more cautious.
Economists say upcoming tax changes have also created uncertainty, with some investors delaying decisions while they assess the impact.
Developers are also feeling the strain, with higher construction costs, expensive financing and weaker prices making new projects harder to deliver.
Industry figures say demand remains strong, but many buyers are struggling with affordability after recent interest rate increases.
Source : ABC News
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