Key takeaways
Property prices continue to soften. Capital city dwelling values fell 1.2% over the past month and are 3.2% lower than a year ago.
Auction activity remains subdued. Just 1,423 homes went under the hammer last week, almost 46% fewer than a year earlier.
Properties are taking longer to sell. The national median selling time has increased to 41 days, compared with 26 days a year ago.
Rental market conditions are easing slightly. The national vacancy rate has risen to 2.0%, while gross rental yields have improved to 3.85%.
Market conditions are creating opportunities for strategic investors. Reduced competition and longer selling times may provide greater negotiating power for well-prepared buyers.
Australia's property markets are continuing to lose momentum, with falling dwelling values, subdued auction activity and longer selling times confirming that buyers are becoming increasingly cautious.
To help keep you up-to-date with all that's happening, below is my updated weekly analysis of data and charts as of 19th October 2026, provided by SQM Research, Cotality, and realestate.com.au.
Cotality's latest figures show capital city dwelling values fell 1.2% over the past month and are now 3.2% lower than a year ago.
Sydney and Melbourne remain under the greatest pressure, with annual declines of 8.3% and 7.1% respectively, while Brisbane is still recording annual growth despite recent falls.
And the spring selling season has failed to deliver its usual lift in auction activity.
Last week, just 1,423 homes went to auction across the combined capitals, almost 46% fewer than a year ago. Meanwhile, homes are taking considerably longer to sell, with the national median time on market increasing to 41 days, compared with 26 days a year earlier.
Interestingly, new listings remain almost 12% below their five-year average, suggesting many vendors are also reluctant to test the market.
Of course, these broad figures disguise significant differences between cities, suburbs and property types, with some markets holding up considerably better than others.
In my view, we're moving through the next phase of the property cycle where buyers have greater negotiating power, and well-located, investment-grade properties will increasingly stand out from secondary assets.
For strategic investors with secure finances, adequate buffers and a long-term perspective, the current market conditions may provide opportunities to buy quality properties with less competition and on more favourable terms.
On the auction front this week...Fewer auctions, higher clearance rate and reserves go public in Victoria
Auction market activity remained subdued last week, with fewer auctions held and a higher preliminary clearance rate.
Across the combined capitals, 1,423 homes went to auction last week, 18.6% fewer than the 1,749 held the previous week and 45.8% lower than the 2,626 held in the same week last year.
See Cotality's full auction report below.
This week, Cotality also reports that:
- Sydney property prices declined -0.4% over the last week, also declined -1.4% over the last month, and are -8.3% lower than they were 12 months ago.
- Melbourne property prices declined -0.4% over the last week, also declined -0.8% over the last month, are -7.1% lower compared to 12 months ago.
- Brisbane property prices declined -0.4% over the last week, declined -1.5% over the last month and are 3.8% higher than they were 12 months ago.
Overall, Australian capital dwelling prices declined -1.2% over the last month and are now -3.2% lower than they were 12 months ago.
Clearly, the property cycle is moving on but our markets are very fragmented.
Source: Cotality October 19th 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 start of this cycle, the market's upper quartile led the upswing, but last year the lower quartile across every capital city recorded a stronger housing-value outcome than its upper-quartile counterpart. Now the more expensive properties are suffering the most.
The following chart shows how different segments of each capital city market are performing.
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 ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 2,051.762 | -8.262 | -0.8% | -2.5% |
| All Units | 891.987 | -1.087 | 0.2% | 1.9% |
| Combined | 1,577.254 | -5.327 | -0.6% | -1.6% |
Source: SQM Research
Melbourne
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,298.900 | 2.600 | 0.0% | 0.3% |
| All Units | 683.455 | 0.852 | 0.6% | 4.3% |
| Combined | 1,104.675 | 2.048 | 0.1% | 1.1% |
Source: SQM Research
Brisbane
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,324.624 | -8.765 | -1.3% | 1.3% |
| All Units | 814.560 | -5.160 | -2.2% | 3.8% |
| Combined | 1,194.933 | -7.848 | -1.5% | 1.6% |
Source: SQM Research
Perth
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,236.803 | -5.354 | -0.6% | 4.8% |
| All Units | 760.565 | -4.777 | -1.6% | 11.6% |
| Combined | 1,111.387 | -5.202 | -0.8% | 5.9% |
Source: SQM Research
Adelaide
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,097.482 | -6.282 | -0.8% | 3.4% |
| All Units | 634.110 | 1.290 | -0.3% | 8.0% |
| Combined | 1,013.708 | -4.913 | -0.8% | 3.8% |
Source: SQM Research
Canberra
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,228.863 | 1.624 | -0.1% | -3.8% |
| All Units | 602.851 | -1.101 | -0.4% | 2.6% |
| Combined | 989.133 | 0.581 | -0.2% | -2.9% |
Source: SQM Research
Darwin
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 889.631 | 29.369 | 5.6% | 15.6% |
| All Units | 515.662 | 4.838 | 6.7% | 16.4% |
| Combined | 742.591 | 19.724 | 5.9% | 15.8% |
Source: SQM Research
Hobart
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 931.937 | -1.137 | 1.3% | 6.7% |
| All Units | 516.713 | -1.013 | -2.3% | 4.9% |
| Combined | 868.183 | -1.118 | 1.0% | 6.5% |
Source: SQM Research
National
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,061.371 | 2.038 | -0.3% | 2.4% |
| All Units | 655.431 | -1.103 | -0.1% | 6.8% |
| Combined | 972.764 | 1.352 | -0.3% | 2.9% |
Source: SQM Research
Cap City Average
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,506.305 | -6.825 | -1.0% | -0.4% |
| All Units | 789.509 | -2.751 | -0.1% | 3.8% |
| Combined | 1,290.928 | -5.601 | -0.9% | 0.2% |
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
Last weekend's auction report
Fewer auctions, higher clearance rate and reserves go public in Victoria
Auction market activity remained subdued last week, with fewer auctions held and a higher preliminary clearance rate.
Across the combined capitals, 1,423 homes went to auction last week, 18.6% fewer than the 1,749 held the previous week and 45.8% lower than the 2,626 held in the same week last year (w/e 19 October 2025).
Since mid-August, auction volumes have been more than 30% lower than the same week last year, and last week’s fall was the largest in that period.
Melbourne accounted for most of the weekly decline, with 203 fewer auctions than the previous week out of a combined capitals fall of 326.
The drop coincided with the introduction of reserve price disclosure requirements in Victoria.
Based on 1,084 results collected, the combined capital weighted average preliminary clearance rate was 51.2%, a rise of 2.4 percentage points on the previous week’s preliminary result of 48.8% and the highest preliminary clearance rate in four weeks.
Through spring to date, the preliminary clearance rate has averaged 52.0%, slightly below the winter average of 52.3%.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State October 20th 2026
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – October2026
- Also read:Latest Property Price Forecasts. Australian Property Market Outlook 2026-2027: Navigating a Market Correction
- Also read:Brisbane Property Market Forecast [2026 & Beyond] – What The Olympics Decade Means for Investors.
- Also read:Melbourne property market forecast for 2026 & 2027 | Separating the fundamentals from the sentiment
Melbourne experienced a significant decline in auction volumes during the initial week of Victoria’s reserve price disclosure requirements.
The city hosted 500 auctions, compared with 703 in the previous week and 1,142 in the corresponding week last year.
Melbourne’s preliminary clearance rate reached 56.2%, based on 411 collected results, representing a 1.4 percentage point increase from the previous week’s 54.8% and the highest rate observed in four weeks.
Sydney held the most auctions of any capital last week, with 574 homes taken to market, 9.2% fewer than the 632 of the previous weeks and 46.8% lower than the 1,079 held in the same week last year.
Its preliminary clearance rate rose 1.7 percentage points to 54.6% (from 52.9% the previous week) but remained below the spring-to-date average of 55.5%.
Brisbane had the lowest preliminary clearance rate of the capitals at 31.5%, with 35 of 111 reported results successful.
Brisbane’s result was 10.1 percentage points higher than the previous week’s 21.4% but 36.3 percentage points lower than last year's 67.8% for the same week.
Auction volumes were lower, with 164 homes taken to market compared with 197 the previous week and 200 in the same week last year.
Adelaide was the only mainland capital where auction volumes were higher than last year.
The city hosted 119 auctions, 13.8% fewer than the 138 of the previous week’s but 35.2% more than the 88 held in the same week last year.
Its preliminary clearance rate fell 10.4 percentage points from 46.8% the previous week to 36.4%, below the springto-date average of 44.6%.
Fifty-two auctions were held in Canberra, 20.0% fewer than the 65 auctioned the previous weeks and 49.5% fewer than the 103 held in the same week last year.
At 65.9%, Canberra’s preliminary clearance rate was the highest of the capital cities, up 29.5 percentage points from the previous week’s 36.4% and the city’s strongest result since mid-April.
Of Perth’s 13 auctions, 11 results were reported, and four were successful. Tasmania held one auction.
Approximately 1,240 auctions are scheduled across the combined capital cities for this week, representing a 12.9% decrease from the 1,423 held last week.
In Melbourne, 489 auctions are scheduled, approximately 70% fewer than in the corresponding week last year.
Our rental markets
Rental trends have evolved over recent months, with the vacancy rate moving higher, rental growth easing and gross rental yields lifting.
The national vacancy rate reached 2.0% in September, up from a record low of just 1.5% in February 2026.
This is the highest national vacancy rate since January 2025, but still well below the pre-COVID decade average of 3.3%.
Hobart is recording the highest vacancy rate, at 3.0%, followed by Sydney at 2.3%, Brisbane and Perth at 2.1%.
The tightest capital city rental market is Adelaide with a vacancy rate of just 1.4%.
The rise in rental vacancy comes despite a sharp pullback in investment but may be attributable to structural changes in
rental demand, where renters are progressively forming larger households in an effort to combat stretched rental affordability.
The monthly pace of rental growth eased to 0.3% in seasonally adjusted terms, the smallest monthly rise since May 2025, taking the annual change in national rents to 5.5%.
Although rental growth looks to be slowing a little, gross rental yields are continuing to repair, rising to 3.85% nationally, the highest since August 2019.
Across the capitals, gross rental yields range from just 3.4% in Sydney to 6.5% in Darwin.
However, even with yields rising, opportunities for neutral to positive cash flow remain low, given the high holding costs including interest rates but also insurances, maintenance and strata fees.
Gross yields are likely to rise further as rents continue to push higher and housing values trend lowe
Sydney
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $1,159.28 | 5.73 | 2.3% | 5.5% |
| All Units | $749.18 | -2.18 | -1.0% | 3.5% |
| Combined | $915.61 | 1.03 | 0.7% | 4.5% |
Source: SQM Research
Melbourne
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $826.30 | -2.30 | -0.1% | 7.0% |
| All Units | $594.12 | -1.11 | -1.3% | 4.2% |
| Combined | $691.97 | -1.62 | -0.7% | 5.7% |
Source: SQM Research
Brisbane
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $838.83 | -0.84 | -0.2% | 8.1% |
| All Units | $651.74 | 2.26 | 0.3% | 5.9% |
| Combined | $754.49 | 0.56 | 0.0% | 7.2% |
Source: SQM Research
Perth
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $888.10 | -2.09 | -0.4% | 6.6% |
| All Units | $664.03 | -1.02 | -0.1% | 1.9% |
| Combined | $795.82 | -1.66 | -0.3% | 5.0% |
Source: SQM Research
Adelaide
| Property Type | Rent $) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $697.74 | 3.26 | -0.2% | 3.7% |
| All Units | $548.12 | -0.12 | -1.9% | 6.4% |
| Combined | $647.50 | 2.12 | -0.7% | 4.5% |
Source: SQM Research
Canberra
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $801.64 | 3.35 | 1.1% | 4.8% |
| All Units | $593.00 | -5.00 | -1.5% | 5.1% |
| Combined | $686.22 | -1.26 | -0.2% | 4.8% |
Source: SQM Research
Darwin
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $847.73 | 24.27 | 2.9% | 14.0% |
| All Units | $667.13 | -2.13 | -1.5% | 13.7% |
| Combined | $735.35 | 8.71 | 0.6% | 13.9% |
Source: SQM Research
Hobart
| Property Type | Rent 9$) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $634.59 | 8.41 | 2.5% | 6.7% |
| All Units | $549.28 | 2.72 | -5.4% | 14.6% |
| Combined | $600.69 | 6.15 | -0.5% | 9.5% |
Source: SQM Research
National
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $788.00 | 1.00 | 1.6% | 8.4% |
| All Units | $608.00 | -3.00 | -1.6% | 6.3% |
| Combined | $704.76 | -0.85 | 0.3% | 7.6% |
Source: SQM Research
Cap City Average
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $932.00 | 1.00 | 0.8% | 6.0% |
| All Units | $673.00 | 0.00 | -1.0% | 3.9% |
| Combined | $794.57 | 0.47 | -0.1% | 5.1% |
Source: SQM Research
Here's how many properties are for sale at the moment
The spring listing season has started slowly.
Over the four weeks ending 11 October 2026, 36,440 new listings came to market, 7.9% fewer than a year earlier and 11.9% below the previous five-year average.
New listings remained close to the five-year average from February to May but have been below it since June and rose only slightly through September, when volumes typically increase
Vendor metrics
Compared to a year ago, homes are taking slightly longer to sell.
Homes are taking noticeably longer to sell, with the national median time on market extending to 41 days over the three months to September 2026, up from 26 days a year earlier.
The slowdown has been sharpest across the combined capitals, where the median of 39 days is the longest in the five-year series.
Canberra is the slowest-selling capital at 50 days. Perth is the fastest-selling capital at 26 days, though its selling time has more than doubled over the year.
Regional markets have also softened, with selling times lengthening to 43 days from 32, just short of the February 2024 high.
