In brief
Australia's median home price fell 1.2% in October, marking the seventh straight month of declines and the fastest pace in four decades, data from property analyst firm Cotality revealed. The nation saw a 6.7% drop from the March peak, with Brisbane leading the slump at 2.0% and capital city prices falling 1.4%. Rising interest rates and reduced investor incentives were cited as key factors.
Australian house prices fell for a seventh consecutive month in October, according to data from property research firm Cotality, which reported a 1.2% drop in the national median price. The decline marked the fastest pace of a downturn in 40 years, leaving Australians with a median home worth 63,400 Australian dollars less than at the March peak.
While Xinhua reported the 1.2% fall, a Guardian article posted earlier cited a 1.4% decline for the month, showing that sources differ on the exact pace of the slump. Both agree that the fall is part of a longer‑term slide since the March price peak.
Median house prices across all capital cities fell 4.5% year‑on‑year, with Brisbane recording the sharpest drop at 2.0% – the fastest decline in that city’s history. Victoria also saw a 1.4% fall in capital city median prices, highlighting a nationwide spread of falling values.
Tim Lawless, Cotality’s research director, said the downturn was driven by an “array of headwinds, including interest‑rate hikes, persistently low confidence, cost‑of‑living pressures and a move by the federal government to wind back tax concessions for property investors.”
“The downturn is due to an array of headwinds, including interest‑rate hikes, persistently low confidence, cost‑of‑living pressures and a move by the federal government to wind back tax concessions for property investors.”
The Reserve Bank of Australia raised the cash rate to 4.6% at the end of September, its highest level in 15 years, and banks are predicting a further increase to 4.85% in the coming meetings.
The falling prices create uncertainty for homeowners, buyers and investors alike, as higher borrowing costs and a tighter macro environment combine to keep the market in a downturn phase for the foreseeable future.
