Arabic version: انخفاض قيم المنازل الأسترالية للشهر السابع

According to The Guardian, Australian home values have declined for a seventh consecutive month, with capital-city prices falling at their fastest pace in 40 years as higher mortgage rates deter buyers. Combined values across state and territory capitals dropped 1.4% in October.

Cotality data showed Brisbane and Perth led the October declines, signalling that the centre of the downturn has moved beyond Sydney and Melbourne towards mid-sized state capitals. Capital-city home values have fallen 8.1% since March, Cotality research director Tim Lawless said.

Lawless said the correction had become broad-based after strong growth in the mid-sized capitals over the past six years. Virtually every suburb in Brisbane, Perth and Adelaide recorded a decline in value during the past three months, he said. The market has faced four interest-rate rises this year, while a fifth was widely expected when the Reserve Bank makes its decision on Tuesday.

High interest rates were the most significant negative influence on demand, Lawless said, alongside affordability pressures and reduced investor activity linked to government tax changes. Morgan Stanley forecast peak-to-trough Australian property-price falls of up to 15%, although Cotality said many owners retain substantial gains from previous years.

Peter Esho, economist and chief executive of 13x, said Sydney and Melbourne appeared close to bottoming, while the mid-sized capitals were at an earlier stage of the downturn. Cotality also reported a slight easing in rental pressures as national vacancy rates rose and rent growth slowed, though rents remained more than 50% higher over six years.