Updated
Updated · ABC News · Jun 30
Australia Home Values Fall 0.4% in June, Marking Biggest Monthly Drop Since 2022
Updated
Updated · ABC News · Jun 30

Australia Home Values Fall 0.4% in June, Marking Biggest Monthly Drop Since 2022

3 articles · Updated · ABC News · Jun 30

Summary

  • Cotality said national dwelling values fell 0.4% in June and 0.7% over the quarter, with revised data showing the market likely peaked in March.
  • Sydney and Melbourne led the downturn, dropping 1.2% and 1.0%, while Brisbane and Perth still rose more slowly and Adelaide was flat, signaling the slowdown has spread nationwide.
  • Three RBA rate hikes, weaker sentiment, higher energy costs linked to Middle East conflict and federal housing tax changes combined to curb demand, according to Cotality and Westpac.
  • Westpac said investment loan applications have already fallen about 20% as investors assess the new tax rules, though grandfathering provisions may limit forced selling.
  • Developers say the policy shift toward new construction is not yet visible in lending data, while 20% to 30% rises in building costs and planning delays are further weighing on supply.

Insights

House prices are finally falling, so why is it harder than ever for Australians to afford a home?
Have government tax reforms just permanently broken Australia's property investment model?