June 26th, 2026
The market is changing. Your advice to buyers and sellers should too.
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Australian housing values dropped by 0.4% in June, the latest Cotality data shows.
Sydney and Melbourne saw the biggest falls, with prices falling by 1.2% and 1.0% respectively over the month. Together, the two largest capital cities continue to weigh heavily on national results as affordability pressures, higher interest rates and weaker buyer sentiment dampen demand.
While capital city markets softened, regional Australia remained more resilient. Combined regional dwelling values climbed by 11.0% annually, compared to 6.1% across the combined capitals.
Cotality’s Research Director Tim Lawless said demand was weighed down even before the cash rate was increased by 75 basis points between February and May this year.
“Higher cost-of-living pressures, deeply pessimistic sentiment and a further dampening of demand via property taxation changes announced in the Federal Budget are all contributing to weaker housing conditions,” he said.
Reflecting market sentiment, the number of new home loan commitments decreased by 6.2% while the value fell by 3.8% in the March 2026 quarter, according to the latest data from the Australian Bureau of Statistics (ABS). It paints a picture of home loan borrowers taking out fewer and smaller loans, even before the Federal Budget in May.
Perth remains the strongest market, but growth is slowing
Despite the broader market slowdown, Perth continues to lead the nation for annual price growth. Perth housing values soared by 23.9% over the past year, making it Australia’s strongest-performing capital city by a significant margin.
However, the pace of growth is no longer as rapid as it was earlier in the year.
Home values in the WA capital rose by 0.7% in June, well below the average monthly growth rate of 2.5% recorded during the March quarter. The figures suggest the market could be moving into a stabilisation phase, after a period of fast-paced growth.
Units continue to outperform houses across most capitals
The latest data highlights the strength of the unit market, thanks to increasing buyer demand for lower-priced housing options and the government’s expanded 5% deposit scheme for first home buyers.
Looking at annual growth, units performed better than houses in every capital city except Canberra and Hobart.
Perth’s unit market delivered the strongest result, with values up by 26.3% annually compared to 23.6% for houses. Brisbane showed a similar pattern, with unit values rising by 20.3% over the year versus 16.8% for houses.
Even in softer markets, units generally outperformed. Sydney unit values increased 1.1% annually while house values were slightly lower than a year ago at -0.1%. In Melbourne, unit values declined by 0.2% annually, but still performed better than houses, which fell by 1.2%.
Houses are still leading the way nationally, but units are closing the gap in more and more capital cities. That’s a sign units are becoming a bigger part of the growth story, especially in the markets performing best right now.
Disclaimer: The information enclosed has been sourced from Cotality, the RBA and the ABS and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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