Key takeaways
Australia’s property markets have moved into a cooling phase, with combined capital city dwelling values falling 0.9% over the past month while remaining 3.5% higher than a year ago.
Sydney and Melbourne continue to lead the downturn, with values now 2.5% and 3.3% lower than a year ago respectively.
Brisbane, Adelaide and Perth remain substantially higher than a year ago, although these markets are also losing momentum and becoming more fragmented.
The combined capital city preliminary auction clearance rate rose to an eleven-week high of 55.1%, helped by fewer withdrawals, although it remains well below the decade average of 68%.
Inflation remains uncomfortably high, with headline inflation running at 3.8% and trimmed mean inflation at 3.6% over the year to June. This keeps the possibility of another interest rate rise firmly on the table.
Asking prices have softened across many capital cities, while homes are taking longer to sell, giving buyers more choice and greater negotiating power.
Rental conditions remain tight, with national rents increasing 5.9% over the year and combined capital city gross rental yields reaching their highest level since August 2019.
The growing differences between cities, suburbs and individual properties reinforce the importance of careful property selection, sound cash flow management and a long-term investment strategy.
Australia’s property markets have entered a more challenging phase, and the latest figures confirm that the momentum of the past few years has shifted.
Combined capital city dwelling values have fallen 0.9% over the past month, although they remain 3.5% higher than a year ago.
However, those national figures hide a widening divide between our capital cities.
Sydney values have fallen 1.4% over the past month and are now 2.5% lower than a year ago, while Melbourne values have declined 1.1% over the month and 3.3% over the year.
Brisbane has also slipped slightly over the past month, yet values remain 14.5% higher than a year ago, highlighting just how differently the various markets are travelling.
At the same time, asking prices are softening across many capitals, properties are taking longer to sell and vendors are generally having to negotiate more than they did earlier in the cycle.
This is the type of market where buyers become more selective and compromise less, while sellers who remain anchored to yesterday’s prices risk watching their properties sit on the market.
Interest rates remain one of the major influences on buyer confidence, particularly after three increases earlier this year.
The Reserve Bank meets this week with inflation still above its target range, yet most economists believe rates won't change this week.
Headline inflation eased slightly to 3.8% over the year to June, while trimmed mean inflation remained at 3.6%, leaving the door open for another increase if inflationary pressures remain persistent.
Meanwhile, the rental market continues to tell a very different story. National rents have increased 5.9% over the past year, listings remain limited and gross rental yields across the combined capitals have risen to their highest level since August 2019.
For investors, this means improving rental income is providing some support as property values soften, although higher borrowing costs, insurance, rates and other holding expenses continue to place pressure on cash flow.
To my mind, this remains a cyclical correction driven by tighter financial conditions rather than a broad deterioration in the fundamentals supporting our housing markets.
Population growth, chronic housing undersupply and rising construction costs remain important long-term influences, but they will not prevent prices from falling temporarily when affordability is stretched and borrowing capacity declines.
This is also becoming a market of properties rather than simply a property market, with investment-grade homes in desirable, supply-constrained locations likely to hold up considerably better than secondary properties with weak owner-occupier appeal.
To me, none of this looks like a market falling off a cliff. It looks like a normal, healthy correction after three rate hikes and months of uncertainty over the coming negative gearing changes.
Normal corrections are exactly the kind of conditions long term investors learn to look past rather than panic over.
If you need to sell today, conditions are undeniably tougher than they were twelve months ago. If you're holding well located, investment grade property for the next decade, this is simply what the middle of a cycle looks like.
Strategic investors should see the current conditions as a reminder to remain financially prepared and highly selective, because softer markets create opportunities for buyers who have the right advice, sufficient buffers and a long-term perspective.
On the auction front this week... clearance rates reach an eleven-week high as auction volumes decline
The preliminary clearance rate across the combined capitals rose to 55.1% last week, the highest in eleven weeks, after a low of 47.4% for the week ending 21 June.
Despite this improvement, clearance rates remain well below the decade average of 68%.
See Cotality's full auction report below.
This week, Cotality also reports that:
- Sydney property prices declined -0.3% over the last week, also declined -1.4% over the last month, and are -2.5% lower than they were 12 months ago.
- Melbourne property prices declined -0.2% over the last week, also declined -1.1% over the last month, are -3.3% lower compared to 12 months ago.
- Brisbane property prices remained flat over the last week, a declined -0.4% over the last month and are 14.5% higher than they were 12 months ago.
Overall, Australian capital dwelling prices declined -0.9% over the last month and are now 3.5% higher than they were 12 months ago.
Clearly, the property cycle is moving on but our markets are very fragmented.
Source: Cotality August 10th 2026
Of course, these are "overall" figures - there is not one Sydney or Melbourne or Brisbane property market.
And various segments of each market are performing differently.
At the beginning of this cycle the upper quartile of the market lead the upswing but last year the lower quartile across every capital city recorded a stronger outcome for housing values relative to its upper quartile counterpart.
The following chart shows how various segments of each capital city market are performing differently, with median-priced properties performing well.
To help keep you up-to-date with all that's happening in property, here is my updated weekly analysis of data and charts as of 10th August 2026, provided by SQM Research, Cotality, and realestate.com.au.
Current property asking prices
Property asking prices are a useful leading indicator for housing markets - giving a good indication of what's ahead.
Here is the latest data available:
Sydney
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 2,047.872 | -8.187 | -1.0% | 0.7% |
| All Units | 889.318 | 1.182 | -0.6% | 1.9% |
| Combined | 1,574.020 | -4.355 | -0.9% | 0.9% |
Source: SQM Research
Melbourne
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,302.821 | -0.931 | -1.1% | 0.6% |
| All Units | 675.605 | -0.505 | -0.5% | 7.0% |
| Combined | 1,104.371 | -0.796 | -1.0% | 1.8% |
Source: SQM Research
Brisbane
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,383.662 | -4.862 | -1.0% | 9.7% |
| All Units | 852.136 | -2.536 | -2.0% | 14.7% |
| Combined | 1,248.935 | -4.273 | -1.1% | 10.4% |
Source: SQM Research
Perth
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,289.785 | -7.791 | -1.2% | 11.4% |
| All Units | 777.860 | 1.993 | -0.7% | 18.7% |
| Combined | 1,155.153 | -5.218 | -1.1 | 12.5% |
Source: SQM Research
Adelaide
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,107.912 | -7.612 | -2.5% | 5.4% |
| All Units | 632.711 | -0.011 | 1.5% | 11.8% |
| Combined | 1,022.198 | -6.241 | -2.1% | 6.1% |
Source: SQM Research
Canberra
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,234.534 | -7.672 | -2.7% | 0.7% |
| All Units | 599.312 | -0.187 | -1.3% | 1.2% |
| Combined | 992.488 | -4.820 | -2.4% | 0.4% |
Source: SQM Research
Darwin
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 841.091 | 1.709 | -1.0% | 5.4% |
| All Units | 492.637 | 0.863 | 4.1% | 14.0% |
| Combined | 704.019 | 1.376 | 0.4% | 7.6% |
Source: SQM Research
Hobart
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 916.313 | -4.768 | -1.4% | 9.5% |
| All Units | 536.557 | 2.143 | -0.3% | 8.6% |
| Combined | 858.094 | -3.708 | -1.3% | 9.4% |
Source: SQM Research
National
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,065.230 | -3.113 | -1.1% | 5.5% |
| All Units | 656.574 | 3.746 | 0.0% | 10.7% |
| Combined | 976.170 | -1.618 | -0.9% | 6.2% |
Source: SQM Research
Cap City Average
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,520.298 | -6.261 | -1.5% | 2.8% |
| All Units | 792.235 | 1.541 | -0.1% | 5.6% |
| Combined | 1,301.779 | -3.919 | -1.2% | 3.2% |
Source: SQM Research
The value of property asking prices as a leading indicator for housing markets is quite significant.
In fact it's more valuable than median prices which can be quite misleading.
Let's delve into why this is the case and how it impacts the real estate market.
- Early Market Sentiment Indicator: Asking prices often reflect the current sentiment of sellers in the real estate market.
If sellers are confident, they might set higher asking prices, anticipating strong demand.
Conversely, if sellers are uncertain or perceive a market downturn, they might lower their asking prices to attract buyers.
This makes asking prices a real-time indicator of market sentiment, often preceding changes in actual sales prices. - Predictive of Future Price Trends: Trends in asking prices can be predictive of where the actual property prices are headed.
For example, a consistent rise in asking prices over a period can signal an upcoming rise in transaction prices. - Impact of Economic Factors: Economic factors such as interest rates, employment rates, and broader economic health influence asking prices.
For instance, changes in the Reserve Bank of Australia's policies or shifts in the job market can quickly reflect in the asking prices, providing insights into how these factors are influencing the housing market. - Regional Variations: In a diverse market like Australia's, asking prices can also provide insights into regional disparities.
For instance, the property markets in Melbourne and Sydney might behave differently from those in Brisbane or Perth. Asking prices can give early indications of these regional trends. - Influence of Supply and Demand: Asking prices are also a response to the balance of supply and demand in the market.
In areas with limited supply and high demand, asking prices tend to be higher and vice versa.
However, it's important to note that while asking prices are a valuable indicator, they should not be used in isolation.
Other factors like actual sales prices, time on the market, auction clearance rates, and economic conditions also play crucial roles in understanding the property market dynamics.
READ MORE: The latest median property prices in Australia’s major cities
- Also read:Latest Property Price Forecasts. Australian Property Market Outlook 2026-2027: Navigating a Market Correction
- Also read:This week’s Australian Property Market Update – Latest Data, State by State August 11th 2026
- Also read:Melbourne property market forecast for 2026 & 2027 | Separating the fundamentals from the sentiment
- Also read:Brisbane Property Market Forecast [2026 & Beyond] – What The Olympics Decade Means for Investors.
- Also read:Sydney property market forecast for 2026 and 2027 | Why the short-term softness is a long-term opportunity
Last weekend's auction report
Clearance rates reach an eleven-week high as auction volumes decline
The preliminary clearance rate across the combined capitals rose to 55.1% last week, the highest in eleven weeks, after a low of 47.4% for the week ending 21 June.
Despite this improvement, clearance rates remain well below the decade average of 68%.
This improvement is mainly due to fewer auction withdrawals.
Last week, only 16.2% of auctions were withdrawn before the event, the lowest proportion since late April.
By comparison, 23.7% were withdrawn during the week ending 21 June, when the clearance rate was at its lowest.
Fewer vendors are choosing to sell by auction.
In late March, auctions accounted for approximately 40% of new capital city listings, but by the first week of August, this had declined to about 26%.
The volume of auctions across the capital cities totalled 1,388 last week, up 10.4% on the week before.
That was still 12.5% below the same time last year, the twelfth week running under yearearlier levels.
Nearly half the national total came from Melbourne, where 654 homes went to auction, up 17% on the week though still 11.9% below a year ago.
At 60.8%, the preliminary clearance rate cleared 60% for the first time since the week of 24 May, up from 59.6% a week earlier.
In Sydney, 421 properties went to auction, 3.7% more than the previous week but 24.3% fewer than a year ago.
The clearance rate rose to 57.0%, the highest in four weeks and well above 49.7% a week earlier.
163 properties went under the hammer in Brisbane, up 19.9% on the week and 31.5% higher than this time last year.
Fewer of those found a buyer, with only 38.1% of auctions reporting a successful outcome, 3.9 percentage points down on the previous week's 42.0%.
Among the smaller capitals, Adelaide's preliminary clearance rate fell to 46.8%, its lowest in five weeks.
Auction volumes remained steady, with 94 auctions, 2.2% above the previous week but 5.1% below last year.
Perth held nine auctions, while Tasmania had none.
Auction activity is expected to remain steady, with approximately 1,320 auctions scheduled this week and about 1,380 the following week.
Our rental markets
Cotality’s national rental index rose by 0.4% seasonally adjusted in July , continuing a modest slowing trend in monthly growth from recent peaks in January.
That said, annual rental growth has remained elevated, increasing by 5.9% yoy for the third straight month .
This is the equivalent of adding around $40/week to the median rent over the past year.
Across the cities, annual rental growth was strongest in Darwin (up 10.4%), Perth (8.1%) and Hobart (8.0%).
In contrast, there was weaker growth in the ACT (3.3%), while rental growth in Melbourne (5.1%) and Adelaide (5.3%) was a little below the national average.
Gross rental yields have continued to move higher in recent months, reflecting the increase in rents against the decline in home values nationally.
In July, the gross rental yield across the combined capitals was 3.56%, its highest rate since August 2019.
Across the major capitals, yields are highest in Melbourne (4.0%) and lowes in Sydney (3.3%) and Brisbane (3.4%).
Sydney
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $1,142.32 | -3.32 | -1.5% | 6.0% |
| All Units | $758.69 | 0.31 | 0.2% | 6.9% |
| Combined | $914.37 | -1.17 | -0.6% | 6.5% |
Source: SQM Research
Melbourne
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $816.82 | -0.81 | 0.6% | 6.4% |
| All Units | $606.06 | 0.94 | 0.0% | 5.4% |
| Combined | $694.75 | 0.26 | 0.3% | 6.0% |
Source: SQM Research
Brisbane
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $839.80 | 10.20 | 0.4% | 8.8% |
| All Units | $646.78 | 1.22 | 0.4% | 6.3% |
| Combined | $752.81 | 6.15 | 0.4% | 7.8% |
Source: SQM Research
Perth
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $895.20 | 1.81 | 0.7% | 7.8% |
| All Units | $670.08 | -0.07 | -0.8% | 2.8% |
| Combined | $802.44 | 1.04 | 0.2% | 6.1% |
Source: SQM Research
Adelaide
| Property Type | Rent $) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $685.85 | 1.16 | -0.4% | 2.2% |
| All Units | $552.54 | -4.55 | -0.8% | 5.8% |
| Combined | $641.05 | -0.73 | -0.5% | 3.3% |
Source: SQM Research
Canberra
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $831.48 | 1.52 | -1.2% | 6.9% |
| All Units | $602.21 | -1.20 | -0.7% | 2.9% |
| Combined | $709.94 | -0.10 | -1.0% | 4.8% |
Source: SQM Research
Darwin
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $852.94 | 12.06 | 1.7% | 8.7% |
| All Units | $665.01 | -5.01 | 5.2% | 18.7% |
| Combined | $742.10 | 2.01 | 3.5% | 13.8% |
Source: SQM Research
Hobart
| Property Type | Rent 9$) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $630.56 | 3.45 | 0.6% | 7.9% |
| All Units | $571.10 | -2.10 | -2.8% | 14.8% |
| Combined | $606.91 | 1.25 | -0.7% | 10.4% |
Source: SQM Research
National
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $777.00 | 1.00 | 0.5% | 7.6% |
| All Units | $614.00 | 11.00 | 2.2% | 7.9% |
| Combined | $701.60 | 5.63 | 1.2% | 7.8% |
Source: SQM Research
Cap City Average
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $924.00 | 3.00 | 0.0% | 6.5% |
| All Units | $683.00 | 1.00 | 0.3% | 6.1% |
| Combined | $796.10 | 1.94 | 0.1% | 6.3% |
Source: SQM Research
Here's how many properties are for sale at the moment
New listings tracked closely with the five - year average through the first half of the year and remained above 2025 levels for most of the year.
Listing activity has softened from a peak in early March, trending downwards through winter, closing 2.1% above year ago levels and 9.0% below the five - year average.
Vendor metrics
Compared to a year ago, homes are taking slightly longer to sell.
Nationally, homes are taking slightly longer to sell, with the median time on market rising to 32 days.
Since late 2025 selling conditions have softened across both the capital city and regional markets.
The rise in selling times has become more noticeable in recent months, with the median time to sell increasing to 30 days across the capitals and reaching 36 days across the regional markets.
This is a clear sign of cooling conditions and increasing supply.
