Key takeaways
Home prices nationally decreased by 0.04% in May, after declining 0.1% in April.
Prices in the combined capital cities were down 0.1% in May, while regional areas continued to grow (+0.2% month-on-month), albeit at the slowest monthly pace since 2023.
Home prices in Sydney and Melbourne were down 0.2% in May, the third consecutive month of price falls for both cities. Even so, the declines have been modest, and prices in both cities are only 1.2% below where they were in March.
Notably, Perth saw prices down 0.1% in May. While a very modest decline, it represents a clear slowing in prices after an extremely strong 2025, and the first monthly decline since late 2024. Even with May’s decline, Perth prices are still up 20.6% compared to a year ago.
Adelaide and Darwin were the best performing capital cities in May, with home prices up 0.3%. Though this too represents a notable slowing from the pace of growth recorded in 2025 and the start of 2026.
After a remarkable run-up in property values over recent years, Australia’s housing market is showing clear signs of moderation
Home prices nationally were flat in May, after a modest decline in April, according to the latest PropTrack data.
Home price growth has clearly stalled as the effects of this year’s consecutive rate hikes flow through.
PropTrack's Senior Economist Angus Moore explains:
The slowdown has been most notable in Sydney and Melbourne, with both cities posting their third consecutive decline in home prices.
Though, these declines have been modest with prices only 1.2% below where they sat in March.
- Also read:Home Prices Now Falling Following Rate Rises | Latest stats from Dr. Andrew Wilson
- Also read:National Weekly Auction Report – May 30th 2026 | Auction Markets Still Sliding as Clearance Rates Tumble
- Also read:Why Australia’s Housing Crisis Just Got More Complicated | Property Insiders
- Also read:This week’s Australian Property Market Update – Latest Data, State by State May 26th 2026
- Also read:Latest Property Price Forecasts. Australian Property Market Outlook 2026: Where To Now After The Rate Rise & Budget Changes.
The slowdown has not been confined to Sydney and Melbourne.
Brisbane, Perth and Adelaide have clearly slowed, after an extremely strong 2025.
Prices were down slightly in Perth, and while prices were up modestly in Brisbane and Adelaide, it was the slowest month of growth for both since late 2022 to early 2023.
Key findings
- Home prices nationally decreased by 0.04% in May, after declining 0.1% in April.
- Prices in the combined capital cities were down 0.1% in May, while regional areas continued to grow (+0.2% month-on-month), albeit at the slowest monthly pace since 2023.
- Home prices in Sydney and Melbourne were down 0.2% in May, the third consecutive month of price falls for both cities. Even so, the declines have been modest, and prices in both cities are only 1.2% below where they were in March.
- Notably, Perth saw prices down 0.1% in May. While a very modest decline, it represents a clear slowing in prices after an extremely strong 2025, and the first monthly decline since late 2024. Even with May’s decline, Perth prices are still up 20.6% compared to a year ago.
- Adelaide and Darwin were the best performing capital cities in May, with home prices up 0.3%. Though this too represents a notable slowing from the pace of growth recorded in 2025 and the start of 2026.
Outlook
According to Moore, with at least one further rate hike expected in 2026, and some pullback in investor demand post-Budget, prices are likely to continue to be soft.
He notes that even so, price declines are unlikely to be large as the labour market remains resilient, households have strong equity buffers, in turn, limiting forced sales, and high construction costs and supply constraints are limiting the volume of new homes.
