Australia’s housing market enters ninth downturn as Domain tips 7% Sydney drop and 8% in Melbourne
AI Market Summary
Australia's housing market is entering a ninth downturn, with Domain and major banks projecting notable price declines in Sydney and Melbourne and a 2%–5% national drop. Falling clearance rates to 47% signal weakening liquidity and demand amid higher rates and tax policy changes. Softer housing wealth can curb household spending and ease inflation pressures, influencing expectations for the RBA's policy path and near-term AUD sensitivity to growth data.
Impact level
● Medium
Affected assets
NCFXAUD2USD/USDT+0.18%
AI Insight · NCFXAUD2USD/USDTAI Insight
▼ Bearish
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Australia’s housing market has entered its ninth downturn, with Domain forecasting Sydney house prices will fall 7% and Melbourne 8% in the new financial year. Major banks including NAB also expect a nationwide decline of 2%-5%, and some modelling suggests Sydney values could drop by just over $100,000 from a median of about $1.75 million. The slide is being driven by consecutive interest-rate rises, changes to negative gearing and capital gains tax, and weaker consumer confidence linked to the US-Iran war. Clearance rates have fallen to 47%, the lowest since the COVID-19 pandemic, pointing to a sharp drop in market liquidity.
