House prices fell across all Australian capital cities in the third quarter of 2026. This is the first simultaneous decline in the 15-year history of the Domain series and only the second such event in the available statistics. The previous one was in 2009.
Total house prices in the capital cities fell by 4.7% in the quarter to A$1,226,566. House prices fell by 3.5% to A$702,858. This is the second consecutive quarter of declines for both types of property.
Perth is the most affected market
The biggest drop in house prices was reported in Perth - 7.4%, to 1,115,227 Australian dollars. The decrease is a record for the city. House prices there decreased by 6.5% to 659,561 Australian dollars.
In Brisbane, houses fell by 5.4% to 1,152,122 Australian dollars, ending almost four years of continuous growth. In Sydney, the decline was 4.7% to A$1,661,167, and in Melbourne - 3.3% to A$1,014,335.
Adelaide reported a 3% decrease to A$1,095,429. In Canberra, prices fell 2.6% to A$1,025,084, in Hobart - 3% to A$790,155, and in Darwin - 2.6% to A$752,478.
Buyers gain a stronger position
Domain attributes the decline to higher interest rates, continued pressure on the cost of living and changes in tax policy for investment properties. Investors are pulling back, while first-time home buyers face higher monthly payments and tighter purchasing power.
The weaker activity is also visible in the sales market, with low auction completion rates, longer wait times and deeper discounts on initial listed prices. Some sellers are changing their expectations or replacing auctions with direct deals.
“The Australian housing market has entered a new stage of decline. What started as weakness concentrated in a few cities has now broadened significantly, with house prices falling in every capital city for the first time in 15 years,“ said Domain chief housing economist Nicola Powell.The exception to the housing market is Darwin, where prices rose 2.2% to A$454,732. According to Domain, affordable housing remains more resilient than houses overall, but declines across all other capitals suggest that the decline is no longer confined to one segment.
The next two quarters will show whether the synchronous decline is a temporary correction or the start of a longer-term revaluation of Australian property. In the short term, the market remains under pressure due to high borrowing costs, affordability constraints and policy uncertainty.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg