Sydney, Melbourne Lead Australia’s Biggest Housing Decline Since 2022
Synopsis
House prices in Australia’s two largest cities fell sharply in June, marking the biggest downturn since 2022 and raising concerns that weakening housing conditions could become a major economic issue in the second half of 2026.
Key Highlights
- Home prices tumble by the most in more than 30 years
- Sydney median home price stands at $1.265 million and Melbourne median $808,486
- The potential of houses to be sold in Sydney has fallen by $141,000 since February.
- Desirable suburbs outpaced the major cities in both Perth and Brisbane for monthly price growth.
- Weak buyer confidence and affordability pressures continue to weigh on the housing market, experts say.
House prices in Sydney and Melbourne are continuing their nationwide decline but regional markets still outperformed this week, despite wider market slowdowns. The latest monthly home price report from CotalityHome, showed a 1.2% decline in June for Sydney and Melbourne was down by 1.0%, the biggest falls in the two cities since 2022.
The median home price in Sydney is now $1.265 million, while it's $808,486 in Melbourne. CotalityHome said the market is weaker from sustained cost-of-living pressures, low consumer confidence and softer demand in the wake of property changes.
Regional Markets Hold Up Better
Regional markets and several smaller capital cities remained robust. Budgets in Adelaide have remained static throughout June, the first time that has happened since early 2025. Brisbane increased 0.3% monthly, Perth up by 0.7% and both Hobart and Darwin were also higher. Only Canberra’s prices had a higher drop of 0.6%.
Cotality said investor activity has fallen significantly while the first-home buyer presence has yet to improve despite better affordability and improved conditions for buyers, Cotality wrote. The firm also highlighted that the weak confidence from buyers remains in the vicinity and continues to hamper market activity.
Weakest Growth Sydney Asking Prices Continue to Slide
Sydney home values are now sitting 3.6%lower than their recent peak. That decline is still not as severe as the 2022 housing correction, when values had dropped roughly 8.5% at a similar stage after rapid rate hikes, Cotality said.
On the other hand, SQM Research has found that on a combined average basis asking prices for dwellings in Sydney fell 2.8%over the month. Average asking prices for free-standing homes have declined 6.4% from their peak almost four months ago, cutting an average of $141,000 from asking prices since February.
source: Yahoo Finance
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