Quarterly Property update – June 2026

The last quarter marked a clear shift in housing conditions, with growth continuing to slow and market performance becoming increasingly fragmented. According to Cotality’s June Home Value Index, national dwelling values rose 0.6 per cent over the quarter, reflecting a market that has moved from broad-based growth to a more selective environment.  

The divergence between markets remains a defining feature of current conditions, with Melbourne and Darwin at opposite ends of the spectrum. 

Melbourne recorded the strongest declines over the quarter of 2.3 per cent, followed by Sydney where dwelling values declined 2.1 per cent over the quarter. Canberra also edged lower, down 0.5 per cent. In contrast, Darwin recorded values increasing 5.2 per cent, followed by Perth at 4.8 per cent. While the smaller capitals continue to outperform, growth has moderated as higher borrowing costs and affordability constraints begin to weigh on demand. 

Regional markets continue to demonstrate greater resilience than the capitals, rising 2.4 per cent over the quarter, compared with flat conditions across the combined capitals. Market performance also varies across price points, with lower-priced segments remaining more resilient, supported by first-home buyers and government incentives.  

Several factors throughout the quarter have created a more challenging environment for housing demand. 

Recent interest rate increases have reduced borrowing capacity and placed additional pressure on household budgets. The Federal Budget has also influenced sentiment, particularly among investors, with proposed changes to negative gearing and capital gains tax arrangements creating uncertainty in some parts of the market. 

Market activity softened during the quarter. New listings increased across many cities as more vendors sought to sell, but buyer demand has not kept pace. Auction markets have also weakened. Preliminary national clearance rates fell to 54.5 per cent at the end of May, with Sydney recording some of the sharpest declines.  

Despite softer demand conditions, several factors continue to provide support. 

Housing supply remains constrained, with elevated construction costs, labour shortages and project feasibility challenges limiting new housing delivery. Population growth remains solid and continues to underpin demand for both owner-occupied housing and rentals. 

The labour market is also providing stability. Employment conditions remain relatively strong and mortgage arrears are low by historical standards, reducing the likelihood of widespread forced selling. 

Rental markets remain exceptionally tight, with low vacancy rates and ongoing rental growth continuing to support investor demand. 

The full impact of recent rate rises and Federal Budget measures is yet to be fully reflected in market activity and may become more evident over coming months. However, housing supply constraints, population growth and resilient employment conditions should continue to provide a floor under values. 

 Melbourne  

The Victorian capital decreased by -2.3 per cent over the quarter, taking the city’s median dwelling price to $812,621. Investors should take note that the gross rental yield figure for Melbourne is 3.9 per cent.  

Sydney  

Sydney also showed a decrease in property values over the per cent of -2.1 per cent, resulting in a median of $1,282 million. The gross rental yield for the Harbour City remains the lowest of the capitals at 3.2 per cent.   

Brisbane  

The Queensland capital continues to record the second most expensive spot for dwelling values at $1,126 million and a quarterly rise of 3.4 per cent. Brisbane’s gross rental yield remained at 3.3 per cent.  

Canberra  

The national capital recorded a decrease of -0.5 per cent during the quarter with the median now sitting at $890,555. For Canberra, the gross rental yield stayed constant at 4.1 per cent.  

Perth  

Perth again recorded the strongest increase of all the capitals, growing by 4.8 per cent over the quarter, which took it’s medium value to over one million dollars at $1,050,354. Perth recorded 3.6 per cent gross rental yield.  

For more information about how you might be able to purchase a property in the current market, get in touch with us today.