22/07/2026
Australia Property Market Report June Quarter 2026
Executive Summary
Australia’s residential property market experienced a noticeable slowdown during the June quarter, with Melbourne emerging as the weakest-performing capital city. Higher interest rates, affordability constraints, and tax policy changes reduced buyer demand and placed downward pressure on prices in many suburbs.
Key Findings
* Melbourne recorded its weakest June quarter in approximately a decade.
* Around 93% of Melbourne suburbs experienced a decline in median house values during the quarter.
* Buyer confidence softened as borrowing costs remained elevated.
* Investors faced increasing holding costs, while owner-occupiers became more cautious.
* Homes generally took longer to sell, and vendors were required to adjust price expectations.
What’s Driving the Downturn?
Several factors contributed to the weaker market:
* Higher interest rates reduced borrowing capacity.
* Cost of living pressures limited household spending.
* Investor sentiment weakened due to increased holding costs and policy uncertainty.
* Consumer confidence remained subdued as economic growth slowed.
Economic Background
Australia’s broader economy also lost momentum.
* GDP growth slowed to 0.3% in the March quarter, indicating softer economic conditions heading into the June quarter.
* Household spending weakened.
* Interest rate sensitive sectors, including housing, continued to slow.
* Inflation remained above the Reserve Bank’s target range, keeping financial pressure on households.
Outlook
The market is expected to remain challenging in the near term. However, Australia’s strong population growth and ongoing housing shortage could provide support over the longer term once borrowing conditions improve. Buyers may continue to have greater negotiating power while sellers need realistic pricing strategies
