October Home Values: Nearly Every Capital City Sees Declines.

Property prices in Capital Cities have continued their slide for the sixth month in a row, as National home values saw a 1.1% decrease compared to August, and a total 5.2% decline when compared to the previous quarter.

What is the Home Value Index (HVI)?

The Home Value Index (HVI)^[1], also known as the Hedonic Home Value Index, leverages recent property sales from each state to track the median value growth of homes nationwide. It serves as a key metric for analysing the performance of the Australian residential property market and is useful when looking at the affordability and investment potential of states and capital cities.

Source: Cotality HVI Report October 2026

State Market Report.

These median values are as of 1st of October 2026.

Sydney

The median home value decreased by 1.4% to $1,198,596.

Melbourne

The median home value decreased by 0.7% to $780,550.

Brisbane

The median home value decreased 1.5% to $1,048,880.

Adelaide

The median home value decreased 1.3% to $928,560.

Perth

The median home value decreased 1.2% to $975,022.

Hobart

The median home value decreased 0.5% to $741,496.

Darwin

The only capital city to increase in value, Darwin grew 0.4% to $633,431.

Canberra

The median home value decreased 1.1% to $861,744.

Sydney Sets the Standard. 

Sydney and Melbourne were the first dominos to fall when property prices started to decrease, and Sydney continues to be the market seeing the largest decrease in prices. However it was Brisbane that actually saw the steepest percentage drop at 1.5%. Both these markets were some of the most rapidly growing areas post-Covid.

Are We Seeing The Emergence of a Buyer’s Market? 

While property prices are falling, higher interest rates seem to be reducing the amount of people buying homes. It was expected that some investors would exit the market, given changes to negative gearing in this year’s budget, but it’s now appearing as though first home buyer’s aren’t stepping in to fill the gap. Auction clearance rates have hit a 10-week low, and nearly 1 in 2 properties went unsold². 

What Does This Mean? 

The property market is seeing lower prices and lower competition across the board, paired with high interest rates and lower borrowing power for many home buyers. a whopping 40% of future homebuyers are actively waiting for a specific mortgage rate before choosing to buy³. 

When choosing whether to buy, it doesn’t always working your favour to follow the crowd. High rates may be driving off new buyers, but it could also create opportunities for buyers willing to explore their options when others aren’t. If you’re looking to buy, it could be worth discussing with your local MoneyQuest broker to see what opportunities are available. You could be closer than you think.

[1] Cotality.com. (2026). Australian housing values down for sixth straight month in September. [online] Available at: https://www.cotality.com/insights/articles/australian-housing-values-down-for-sixth-straight-month-in-september [Accessed 1 Oct. 2026].

[2] Slade, L. (2026). National auction clearance rate hits 10-week low as AFL grand final and interest rate fears hit sales. [online] Australian Financial Review. Available at: https://www.afr.com/property/residential/auctions-slump-to-10-week-low-as-tamarama-units-take-9m-haircut-20260927-p610j6 [Accessed 1 Oct. 2026].

[3]Cotality (2026). Bend it like buyers. [online] Cotality.com. Available at: https://www.cotality.com/au/insights/analysis/bend-it-like-buyers?utm_campaign=282371518-AU-Pulse&utm_medium=email&_hsenc=p2ANqtz–n3pwFteoK8kE5p-y8nszVlTw8xvZoM6juhzsd3YRhO658sZZnSC7lNqTQ9tQsXw-wXYaPPJegLwmsbAT6PpYjBu3ftA&_hsmi=34695173&utm_content=34695173&utm_source=hs_email [Accessed 1 Oct. 2026].

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