Capital city values retreat across the board, while regional markets hold firm
Home prices fell across every Australian capital city in June, dragging the national average down 0.3%, as the market absorbed its consecutive interest rate rises alongside new investor tax settings.
According to the latest realestate.com.au Market Snapshot, Sydney and Perth recorded the largest monthly falls among the capitals, each down 0.5%, followed by Melbourne and Canberra at -0.4%.
Brisbane, Adelaide, Darwin, and Hobart all posted more modest declines. Darwin was the sole capital to record a price increase, rising 0.2% over the month.
Despite the monthly softening, annual price growth remains positive in all capital cities except Melbourne, with national values up 5.8% year-on-year.
"The cumulative impact of three interest rate rises and changes to investor tax settings have dampened buyer demand, contributing to softer prices in June," said Anne Flaherty (pictured right), senior economist at realestate.com.au. "Despite these monthly falls, prices in every capital city except Melbourne remain higher compared to a year ago, with national prices up 5.8%."
Regional markets continued to outperform the capitals, with most sitting at record highs. Flaherty attributed this to affordability dynamics, noting that unit growth has outpaced houses over the past year, and that regional areas have outperformed capital cities on an annual basis.
Listings rise, conditions shift toward buyers
New listings nationally increased 13.3% year-on-year in June, with growth recorded in every capital city and across the combined regional areas. Darwin, Perth, and Brisbane led the capitals in annual new listing growth, at 31.9%, 25%, and 22.4% respectively.
"Regional areas have continued to outperform the capitals," Flaherty said. "Prices held steady in the combined regional markets over June, with most regional markets still sitting at record high levels."
On a total listings basis, Canberra, Brisbane, and Adelaide saw the largest year-on-year increases in stock for sale, while Hobart and Darwin recorded fewer total listings compared with June 2025.
| New buy listings | Total buy listings | |||
|---|---|---|---|---|
| Month-on-month | Year-on-year | Month-on-month | Year-on-year | |
| Sydney | -8.4% | 3.4% | -1.3% | 10.4% |
| Melbourne | -3.1% | 9.0% | -2.0% | 5.8% |
| Brisbane | 11.3% | 22.4% | 9.2% | 11.8% |
| Adelaide | 6.1% | 18.3% | 3.6% | 11.3% |
| Perth | -0.7% | 25.0% | 4.7% | 2.5% |
| Hobart | -10.6% | 7.8% | -9.6% | -22.8% |
| Darwin | -5.3% | 31.9% | 3.2% | -11.5% |
| Canberra | -17.1% | 19.5% | -6.3% | 14.0% |
| Capital cities | -1.7% | 12.8% | 0.7% | 7.3% |
| Regional areas | 6.7% | 14.0% | 1.2% | -3.7% |
| National | 1.3% | 13.3% | 0.9% | 2.1% |
Month-on-month, new listings fell in most capitals as the market entered the quieter winter selling period, with Brisbane and Adelaide the only exceptions. The report noted that anticipated changes to capital gains tax settings from 1 July 2027 may be encouraging some sellers to bring forward their plans to list.
Auction clearance rates at lowest level since 2020
The national auction clearance rate has remained below 50% for eight consecutive weeks as of the final week of June.
"Auction clearance rates had been falling since the start of the year in response to the three consecutive interest rate rises seen between February and May," Flaherty said. "A further decline in the clearance rate was seen following the announcement of the federal Budget in mid-May, which has contributed to a slowdown in investor demand."
Low clearance rates signal a divergence between buyer and seller price expectations, which the report cautioned could lead to further price declines in the months ahead.
Selling times showed a marginal improvement on an annual basis. The median days on market nationally fell from 37 to 36 days year-on-year. Capital city figures were unchanged at 32 days, while regional markets improved from 51 to 44 days.
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