Sunita Somvanshi
Home values fell across 97% of Australian capital-city suburbs in the three months to the end of September, according to Cotality’s Home Value Index. Every capital city except Darwin recorded a quarterly decline.
What the data shows
Cotality’s October 2026 Home Value Index says home values declined across 97% of capital-city suburbs over the three months to September. Its September report had found declines across 93% of capital-city suburbs through winter.
National home values were 5.2% below their March 2026 record high after a 1.1% fall in September. Brisbane recorded the sharpest capital-city decline that month, at 1.5%, slightly ahead of Sydney’s 1.4%.
What it means for homeowners
With housing values declining across most capital-city suburbs, buyers hold greater negotiating leverage as market conditions weaken. Homeowners and investors carrying high debt should assess their loan repayments and avoid relying on previous peak valuations when setting a sale price.
Why prices are falling
*Why are Australian house prices falling despite population growth?* Population growth can support rental demand, but property prices also depend on borrowing capacity, interest rates, household finances and the balance between supply and demand. Cotality’s index points to a broad-based slowdown across capital-city housing markets.
The next monthly Cotality Home Value Index is due in November. Check back for updates.
