- Australia's home values fell another 0.9% in August
- It's the fifth consecutive month of decline and sees values fall 3.6% below their March peak
- The downturn is becoming more widespread, with 93% of capital city suburbs seeing values decline
Only Darwin has been immune to the sharp decline in values that has spread to every capital city, according to Cotality data.
Nationally, home values fell another 0.9% in August and are now 3.6% below their March peak.
"What started as a more concentrated easing across higher-value segments has become a much more generalised softening with the vast majority of capital city suburbs [93%] recording some level of decline," Cotality's research director Tim Lawless said.
Sydney continues to lead the downturn with values falling another 1.4% over the previous month.
Melbourne (1.1%) and Brisbane (1.0%) are the only other capitals seeing declines of 1% or more.
The previously robust markets of Adelaide and Perth weren't too far behind with their home values both dropping 0.8%.
August home value index
| City | Monthly change | Annual change | Median value |
| Sydney | -1.4% | -4.6% | $1,222,718 |
| Melbourne | -1.1% | -4.7% | $786,718 |
| Brisbane | -1.0% | +10.8% | $1,080,142 |
| Adelaide | -0.8% | +8.6% | $937,207 |
| Perth | -0.8% | +15.6% | $999,987 |
| Hobart | -0.2% | +8.1% | $752,397 |
| Darwin | +0.6% | +14.6% | $647,259 |
| Canberra | -1.1% | -0.4% | $864,998 |
| Combined capitals | -1.1% | +1.1% | $990,394 |
| Combined regional | -0.4% | +7.7% | $764,020 |
| National | -0.9% | +2.7% | $912,885 |
(Source: Cotality)
Higher-end homes continue to bear brunt
Most capitals continue to see the more expensive end of the market record weaker conditions than lower-priced housing although the performance gap is narrowing as the downturn has become more broad-based.
Cotality analysis attributes this to continuing affordability pressures and weaker demand becoming more widespread.
See also: NAB tips September cash rate hike, NAB says November
The company's quarterly estimate of home sales is tracking 15.5% lower than at the same time last year with Brisbane, Perth, and Sydney seeing the biggest declines in transaction activity.
As demand has weakened, homes are taking longer to sell, leading to listings building up.
Over the four weeks ending 30 August, capital city listings were 24% higher than a year ago.
"Higher advertised stock levels are simply a factor of a slower rate of absorption," Mr Lawless said.
"Longer selling times, larger vendor discounting and persistently low auction clearance rates all point to a buyer's market, yet buyers are lacking the confidence to transact at the moment."
Rents continue to rise
Cotality reported the national vacancy rate rose to 1.9% in August, its highest level since January 2025 after a record low of 1.5% in February.
Despite this, rental values continue to climb across the country, rising 0.4% seasonally adjusted during August, taking the annual increase to 5.7%.
On a national basis, rents have surged 39% over the past five years, leaving renters paying around $200 more per week than they were in 2021.
Perth leads the way for the largest increase in rents over the past five years, with the city's rental values up 56%.
The rise in rents coupled with falling home values have seen gross rental yields continue to trend higher with the national figure now at 3.79%, its highest level since September 2019.
Cotality noted changes to property tax policies in the federal budget are likely seeing investors place more emphasis on higher-yielding properties.
"[But] yields would need to rise substantially before rental income offsets holding costs, particularly while interest rates remain elevated," Mr Lawless said.
He said record high rental unaffordability may prove a constraint in rents further rising.
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
