Australia’s Property Boom Is Unraveling. How Bad Will It Get?

Live updates

1. 2h ago

   Australia Property Market Suffers Six-Month Price Slide

   Australian home prices have fallen for six straight months, extending a severe property slump that threatens to trigger the nation's biggest downturn in decades and elevate recession risks. Property values are plunging across almost every capital city, accompanied by tumbling sales figures and acute mortgage stress in areas such as Melbourne suburbs. While analysts forecast steep double-digit declines ahead, some market observers note the housing correction could offer unexpected benefits for domestic banking institutions.

   Why it matters

   The unfolding property correction follows years of meteoric price growth that pushed affordability to extremes across the country. Surging borrowing costs, highlighted by the Reserve Bank of Australia raising the cash rate to 4.60 per cent, have severely constrained buyer borrowing power and crushed transaction volumes. The broader economic implications extend past individual household balance sheets, directly influencing national output and recession vulnerabilities.

   What is confirmed

   • Australian home prices fell for the sixth straight month in September.
   • Property prices are plunging in almost every capital city across Australia.
   • National values fell 0.9 per cent in August.
   • The Reserve Bank of Australia raised the cash rate to 4.60 per cent.

   Still unconfirmed

   • Property values are set to plunge 15 per cent.
   • Australia faces its biggest property downturn in 40 years, raising recession risk.

   What to watch next

   • Further movements in the Reserve Bank of Australia cash rate
   • Upcoming national home price indices for the final quarter
   • Suburban default and mortgage stress tracking reports
   Sources used for this update (18)

   1. Bloomberg.com — Australia’s Property Boom Is Unraveling. How Bad Will It Get?
   2. The Guardian — Property prices are plunging in almost every capital city across Australia – see how your suburb rates
   3. Financial Times — Australia’s housing slump could have a silver lining for its banks
   4. ABC News & Headlines – Australian Broadcasting Corporation — Australia faces 'biggest property downturn in 40 years', raising recession risk
   5. The Australian — Property values set to plunge 15 per cent
   6. Reuters — Australian home prices fall for sixth straight month, set for worst downturn in 30 years
   7. ABC News & Headlines – Australian Broadcasting Corporation — Melbourne suburbs among the most mortgage-stressed in Australia
   8. Yahoo Finance — Australian home prices fall for sixth straight month in September, sales tumble
   9. News.com.au — Experts quietly change tune on house prices
   10. SMH.com.au — House prices slump extends to six months
   11. flipboard.com — U.S. GDP Shows Strong Growth Revised Up to 2.2%
   12. propertyupdate.com.au — Latest Property Price Forecasts. Australian Property Market ...
   confidence 95%