Australia’s property market is officially in a downturn, says Domain | The Business | ABC NEWS
Any remaining doubt about the direction of Australia’s housing market has been removed with Domain declaring the boom underpinning the national property market has come to an end.
Domain says the June quarter shows combined capital city house and unit prices fell by more than one per cent, the first quarterly decline in more than three years.
Chief of research and economics at Domain, Nicola Powell says the data around units has come as a surprise.
She says hesitation from investors may have had a ripple effect on first home buyers, because “nobody wants to purchase when property prices are falling.”
Domain is forecasting potential declines of up to 8 per cent in Melbourne and up to 7 per cent in Sydney for the 2026/2027 financial year.
For the national outlook, the forecast shows expected weaker conditions for the rest of 2026.
Nicola Powell says an interest rate cut could change that forecast, but the RBA is not expected to lower the cash rate any time soon.
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