June 19th, 2026
Renters are still waiting for competition to ease while buyers get more options
Market insights
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Australia’s property market cooled slightly in June, with national housing values falling by 0.4%, according to the latest Cotality data.
Sydney and Melbourne led the slide, down by 1.2% and 1.0% for the month. According to Cotality’s Research Director Tim Lawless, this was driven by stretched affordability, property taxation changes and shaky buyer confidence, even before the Reserve Bank lifted the cash rate by 75 basis points earlier this year.
Lending figures back this up. New home loan commitments dropped by 6.2% in the March 2026 quarter and the total value of those loans fell by 3.8%, the latest data from the Australian Bureau of Statistics (ABS) shows. This suggests that borrowers are taking out fewer loans, and smaller ones too, even before the Federal Budget changes landed.
However, regional Australia is telling a different story. While capital city prices cooled, regional values are up by 11.0% over the year, well ahead of the 6.1% rise across the combined capitals.
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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