Australia’s property market is experiencing its fastest downturn in 40 years, with falling home values, rising listings and higher interest rates putting pressure on investors.
National property values fell 1.2% in October, marking the seventh consecutive monthly decline. The combined capital city markets are now around 8% below their March peak, according to Cotality.
Brisbane and Perth, which led the previous property boom, are now recording some of the steepest falls. Brisbane values dropped 2% in October, while Perth declined 1.7%. Meanwhile, Hobart and Darwin recorded gains, highlighting a growing divide between Australia’s property markets.
Buyers gain negotiating power
On Buying Power, host Reshmi Kumar is joined by Victor Kumar of Right Property Group to examine what the downturn means for property investors and prospective buyers.
The market shift comes as the Reserve Bank of Australia lifts the cash rate to 4.85%, adding further pressure to mortgage holders and investors.
Auction clearance rates have also fallen below 50%, while property listings have increased compared with last year. The changing conditions are giving buyers greater negotiating power as sellers face a more challenging market.
Where are the opportunities?
Kumar and Kumar examine whether the current conditions represent a market correction, a broader crash or an opportunity for investors prepared to negotiate.
The discussion also explores why regional property markets are showing greater resilience than capital cities, whether investors should look beyond metropolitan areas and if buyers should act now or wait another six months.
With conditions changing rapidly, the key question for investors is whether falling prices are creating opportunities or signalling further declines ahead.
