PropTrack Report: Australian Home Prices Fall For Sixth Consecutive Month In September

According to the PropTrack Home Price Index, national Australian home prices dropped 0.2 % monthonmonth in September 2026, marking the sixth consecutive monthly fall. National dwelling values are now 3.3 % below the March 2026 cyclical peak, with annual growth easing to just 0.1 %. Elevated interest rates keep squeezing borrowing capacity. Several previously resilient capital cities have joined the downward trend. Units / apartments materially outperform standalone houses.

CapitalCity Price Performance

Combined capitalcity prices fell 0.3 % monthonmonth, down 4.3 % from peak and 1.6 % yearonyear.

- Adelaide: 0.6 % (largest monthly fall among capitals)

- Sydney: 0.3 %

- Perth: 0.3 %

- Brisbane: 0.2 %

- Melbourne: 0.2 %

- Canberra: 0.1 %

- Darwin: +0.1 % (only capital with positive monthly gain, hitting fresh alltime high; +12.0 % yearonyear)

Sydney and Melbourne remain the most corrected major markets, down 5.5 % and 5.7 % respectively from their peaks. Formerly resilient markets including Adelaide, Brisbane and Perth have seen accelerated declines over the past threemonth window.

Regional Australia Performance

Regional dwelling prices were flat monthonmonth in September. They sit only 0.7 % below peak while retaining a solid 5.1 % annual rise, demonstrating stronger resilience versus capital cities.

Dwellingtype divergence: Units outperform houses

 National standalone houses: 0.3 % monthonmonth in September, 0.4 % yearonyear, facing heavier downward pressure.  Units / apartments: broadly flat monthonmonth, +1.8 % yearonyear.

Market commentary: Higher interest rates reduce borrowing power. Many buyers shift toward moreaffordable unit stock, underpinning apartment values, while larger detached homes face stronger headwinds.

Market Summary

Australia has entered the traditional spring selling season, yet home values keep sliding. Downturn is no longer limited to Sydney and Melbourne; weakness has spread to formerly strong markets such as Adelaide and Brisbane. Darwin and regional areas stand out as relative safe havens.

Investors need to analyse cities and dwellingtypes individually rather than relying purely on national aggregate figures. In the current environment of high interest rates and taxsystem changes, rental cashflow should be prioritised over speculative capitalgrowth expectations.

Data sources: Public reports from PropertyUpdate & PropTrack Home Price Index