Australia’s Housing Boom Ends as First Quarterly Price Fall in More Than Three Years

For the last few years Australia's property markets seemed almost unstoppable, but the latest Domain House Price Report suggests we've now reached a very different stage of the property cycle.

Domain's June Quarter 2026 House Price Report revealed the broad-based housing boom that has driven Australian property markets for more than three years has come to an end.

According to the report, the combined capital city house prices fell 1.4% (-$17,489) over the June quarter, while unit prices declined 1.2% (-$8,631), ending the longest uninterrupted run of quarterly growth since 2012-15.

The June quarter marks a clear shift in market conditions, with higher interest rates, affordability pressures and weaker buyer confidence driving increasingly different outcomes across cities, property types and buyer segments. Investors and first-home buyers are becoming more price-sensitive and selective, as higher borrowing costs, policy uncertainty, and softer prices reduce urgency to purchase.

However, annual growth remained positive across both property types but slowed to nine-month lows.

The June quarter marks a clear shift in market conditions

Domain Chief of Research and Economics, Dr Nicola Powell, said the June quarter marks a clear turning point for Australia's housing market, explaining:

“Three months of data confirm that higher interest rates, affordability pressures and weaker confidence are changing buyer behaviour and bringing the broad-based growth cycle to an end."

Domain highlights that investors and first-home buyers are becoming more price-sensitive and selective, as higher borrowing costs, policy uncertainty, and softer prices reduce urgency to purchase.

Sydney, Melbourne, and Canberra recorded declines in house prices, while Brisbane and Perth recorded modest gains.

Adelaide emerged as the only capital city where house price growth accelerated, while Perth continued to record strongest annual growth nationally.

Dr Powell further notes:

"Australia is no longer moving as a single housing market. Sydney, Melbourne, Brisbane and Canberra are in decline.

Adelaide continues to strengthen, and Darwin is bucking the trend in units, highlighting how local affordability, supply and demand are driving increasingly different outcomes."

Table 1. House prices, quarterly and annual changes

HOUSES | STRATIFIED MEDIAN PRICE
Capital City	Jun-26	Mar-26	Jun-25	Quarterly change	Annual change	Price peak achieved	Price from peak
Sydney	$1,733,891	$1,793,775	$1,715,294	-3.3%	1.1%	Mar-26	-3.3%
Melbourne	$1,041,205	$1,074,586	$1,045,671	-3.1%	-0.4%	Dec-25	-4.2%
Brisbane	$1,212,562	$1,207,429	$1,042,071	0.4%	16.4%	Jun-26	0.0%
Adelaide	$1,125,070	$1,073,884	$970,165	4.8%	16.0%	Jun-26	0.0%
Canberra	$1,037,766	$1,064,376	$1,015,225	-2.5%	2.2%	Jun-22	-3.6%
Perth	$1,183,108	$1,171,247	$965,833	1.0%	22.5%	Jun-26	0.0%
Hobart	$818,557	$804,914	$733,219	1.7%	11.6%	Jun-26	0.0%
Darwin	$612,732	$605,221	$632,274	1.2%	-3.1%	Mar-14	-10.9%
Combined capitals	$1,276,413	$1,293,901	$1,194,362	-1.4%	6.9%	Mar-26	-1.4%

The unit market has become the clearest sign of a changing market.

Prices fell in every capital city except Darwin, where values increased 5.0% over the quarter, ending multi-year growth cycles across Sydney, Brisbane, Perth and Adelaide, and reflecting weaker investor activity and more cautious first-home buyer demand, according to the report.

• Also read:Sydney housing market update | July 2026
• Also read:Land Prices Are Surging While Building Cost Growth Cools | Property Insiders
• Also read:Melbourne housing market update | July 2026
• Also read:Australian housing market update | July 2026
• Also read:Latest Property Price Forecasts. Australian Property Market Outlook 2026-2027: Navigating a Market Correction

Dr Powell highlights:

"The unit market is providing one of the clearest signs of changing conditions.

Price declines across almost every capital city suggest investors and first-home buyers are becoming more cautious as borrowing costs rise and expectations of future price growth moderate."

Table 2. Unit prices, quarterly and annual changes

UNITS | STRATIFIED MEDIAN PRICE
Capital City	Jun-26	Mar-26	Jun-25	Quarterly change	Annual change	Price peak achieved	Price from peak
Sydney	$849,068	$861,846	$828,408	-1.5%	2.5%	Mar-26	-1.5%
Melbourne	$587,137	$587,421	$577,413	-0.05%	1.7%	Dec-21	-3.0%
Brisbane	$790,087	$799,586	$684,813	-1.2%	15.4%	Mar-26	-1.2%
Adelaide	$628,865	$647,131	$578,515	-2.8%	8.7%	Mar-26	-2.8%
Canberra	$523,265	$536,781	$517,015	-2.5%	1.2%	Mar-26	-2.5%
Perth	$702,180	$711,605	$566,930	-1.3%	23.9%	Mar-26	-1.3%
Hobart	$573,955	$579,173	$568,416	-0.9%	1.0%	Mar-25	-2.9%
Darwin	$443,300	$422,038	$352,965	5.0%	25.6%	Mar-16	-8.2%
Combined capitals	$728,670	$737,301	$688,725	-1.2%	5.8%	Mar-26	-1.2%

Other key findings from the report

• Sydney led the downturn, recording the largest quarterly decline nationally. House prices fell 3.3% (-$59,884) to $1.73 million, marking the city's first quarterly decline since December 2022 and its weakest annual growth rate in three years. Unit prices also declined for the first time in two years, highlighting the breadth of the market slowdown.
• Adelaide was the standout performer nationally. House prices rose 4.8% ($51,186) to a record $1.125 million, recording the strongest quarterly increase of any capital city. The result saw Adelaide overtake Melbourne as Australia's fourth most expensive capital city for houses.
• Melbourne's downturn deepened, with house prices falling 3.1% (-$33,381) over the quarter, marking the city's steepest decline in almost four years. Annual house prices turned negative for the first time in 15 months, while units recorded a second consecutive quarterly decline.
• Canberra also recorded declines across both houses and units, marking the first quarterly fall in house prices in 15 months and reinforcing the broadening slowdown across higher priced markets.
• Perth continued to record the strongest annual house price growth nationally, with values rising 22.5% year-on-year. However, quarterly growth slowed to its weakest pace in 15 months, suggesting the market has moved beyond its peak rate of expansion.

Market conditions have softened nationally, with listings increasing, homes taking longer to sell and buyers gaining negotiating power.

Auction clearance rates have fallen to their lowest level since April 2020, while withdrawal rates have increased as sellers adjust expectations to changing conditions.

Dr Powell added:

"Strong population growth, limited housing supply and elevated construction costs continue to support prices, but affordability is now the dominant force shaping the market.

Buyers have more choice, less urgency and greater negotiating power than they've had in several years."

What this means to you...

While these results confirm the broad-based housing boom has run its course, I don't see this as the beginning of a widespread property downturn.

Instead, we're returning to a more normal market where local economic conditions, affordability, supply constraints and demographics will matter far more than broad national trends.

That's actually good news for strategic investors.

The easy gains that lifted almost every market are behind us, but opportunities will continue to exist for those who understand that Australia has never been one property market.

As always, the investors who focus on quality assets, take a long-term view and buy based on fundamentals rather than headlines will be best placed to build wealth through the next phase of the cycle.