# House prices fall across Australia for first time in 15 years

> Every Australian capital city records falling house prices in the September quarter, driven by higher interest rates and weak buyer confidence.
- Title: House prices fall across Australia for first time in 15 years
- Summary: Every Australian capital city records falling house prices in the September quarter, driven by higher interest rates and weak buyer confidence. House prices…
- Keywords: australia, house prices, sydney, melbourne, perth, brisbane, adelaide, real estate, interest rates, housing market, news, politics
- Source: the Guardian — https://theguardian.com/australia-news/2026/oct/22/house-prices-fall-sydney-melbourne-perth-brisbane-adelaide-hobart-darwin
- Author: Australian Associated Press
- Published: 2026-10-21T21:56:27+00:00
- Read time: 1 min
- Topics: australia, house prices, sydney, melbourne, perth, brisbane, adelaide, real estate, interest rates, housing market, news, politics
## All capitals falling together
House prices are falling across every capital city for the first time in fifteen years and the second time on record, according to Domain's September Quarter two thousand twenty-six House Price report.
## Sydney and Melbourne lead the decline
Sydney house prices fell four point seven percent in the September quarter to one point six six million dollars, a two-year low.
## Perth, Brisbane and Adelaide hit records
Perth recorded the sharpest drop with house prices falling a record four point seven percent. Brisbane and Adelaide also logged their steepest quarterly house price falls on record.
## Interest rates and sentiment driving falls
Higher interest rates, persistent cost-of-living pressures and changes to housing investment tax policy are driving the reductions. Domain's chief residential economist Nicola Powell said weak sentiment across buyers is the key factor.

> Geographically, the downturn has broadened, but also across property types with houses and units also falling.
## Recovery depends on interest rate cuts
Powell said prices could continue falling for many months and confidence will not change until interest rate cuts are discussed, expected in the latter part of next year.

> Something needs to shift to alter the confidence to transact and I cannot envisage the confidence changing until we see an interest rate cut.
## Key takeaway

House prices fell in every Australian capital city in the September quarter for the first time in 15 years, with Sydney down 4.7% to one point six six million dollars and Melbourne down 3.3% to one point zero one four million dollars.