Australia’s housing market continued to cool in September, with national dwelling values falling for the sixth consecutive month. However, annual growth across regional markets and several capital cities shows that conditions remain mixed across the country.
Property values fell by 1.1% in September, with the median home value now at $899,236, according to the latest data from Cotality. This leaves national dwelling values 5.2% below their March 2026 peak.
Adding to affordability pressures, the Reserve Bank of Australia (RBA) raised the cash rate by 25 basis points to 4.60% in September. The widely anticipated increase was the fourth rate rise this year, taking the cash rate to its highest level since 2011. The RBA cited persistent inflation, with recent results stronger than expected, while unemployment remains low by historical standards.
Brisbane and Sydney lead monthly falls
Brisbane recorded the sharpest monthly decline among the capitals, with values falling by 1.5%, followed by Sydney at 1.4%. Adelaide and Perth both fell 1.3%, while Melbourne recorded a smaller decline of 0.7%.
Sydney remains one of the weaker markets, with dwelling values down by 7.0% over the year and 8.2% year to date. Melbourne values have also fallen over the past year, sitting 6.2% below September 2025 levels.
However, several cities are still recording annual growth. Perth and Darwin led the capitals, with values rising by 10.1% and 11.9%, respectively. Brisbane also remained in positive territory, up by 5.9% over the year.
Nationally, dwelling values were unchanged compared with September last year, reflecting the different conditions across local markets.
Regional markets continue to outperform
Regional housing values have proved more resilient than the capitals, rising by 5.6% over the year compared with a 1.8% decline across the combined capitals.
Regional Western Australia recorded the strongest annual growth at 14.1%, followed by regional Tasmania at 11.6% and regional South Australia at 10.7%. Although regional values fell by 0.7% in September, annual growth remains positive across the regional states.
More choice for buyers as sales slow
Estimated home sales over the past three months were down by 19.1% compared with the same period last year. Meanwhile, total advertised stock across the combined capitals rose by 23.1%, despite new listings falling by 9.2%.
Homes are also taking longer to sell, with the median time on market increasing to 39 days from 23 days a year earlier. This gives buyers more choice and time to weigh up their options, although affordability and weaker consumer confidence continue to limit demand.
With regional markets and some capital cities still recording annual growth, September’s results highlight the importance of looking beyond national figures. Local conditions remain varied, and the balance between buyer demand and available stock will be worth watching in the months ahead.
Disclaimer: The information enclosed has been sourced from Cotality and the Reserve Bank of Australia and is provided for general information only. It should not be taken as constituting professional advice.
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