Australian Home Values Decline for Seventh Month, Fastest in 40 Years

Australia’s housing downturn deepened in October, with Cotality’s combined capital city index falling 1.4% during the month and recording its seventh consecutive monthly decline.

Across the combined capitals, values are now down 8.1% over seven months. Cotality says this is the fastest pace of decline recorded in more than 40 years, leaving the market only 0.1 percentage point short of the largest peak-to-trough fall seen over that period.

Brisbane recorded the largest October decline at 2.0%, followed by Perth at 1.7% and Sydney at 1.6%. Melbourne fell by a more moderate 0.8%, suggesting its pace of decline has started to ease compared with some other capitals.

For Melbourne’s western growth corridor, the broader downturn is likely to continue favouring buyers over sellers. Higher borrowing costs, weaker confidence and affordability constraints are reducing competition and giving buyers more time to compare properties and negotiate.

Sellers may need to remain realistic about pricing, particularly where comparable properties are sitting on the market longer or buyers have multiple alternatives available.

For investors, softer prices can create opportunities, but higher finance costs mean rental yield and cash flow remain critical. Well-located properties with strong rental demand may prove more resilient than areas relying heavily on short-term capital growth.

The latest figures also show why national averages need to be interpreted carefully. Brisbane and Perth are now declining faster than Melbourne, demonstrating how quickly local market conditions can change.

Overall, the current downturn remains significant, but Melbourne’s relatively slower October decline may indicate a more stabilised phase compared with some other capitals. Buyers in the west may therefore find increased negotiating power without necessarily facing the sharpest falls seen elsewhere.