Australian residential property markets are accelerating into a downturn, with major capital cities posting steep annual declines in dwelling values.
Data from Cotality indicates that Sydney home prices have fallen 13% year-on-year over the past three months, while Melbourne has seen an 11% drop.
These figures mark a decisive break from the record housing boom that characterized the previous cycle, confirming that the market is now in a deflationary phase.
The repricing reflects a convergence of policy headwinds and structural financial stress.
The Reserve Bank of Australia’s recent interest rate increases have compounded the impact of a federal budget that analysts describe as fiscally damaging.
Together, these factors have squeezed household disposable income, reducing the pool of qualified buyers and forcing sellers to adjust expectations downward.