News Desk
Brisbane’s housing downturn has stretched into a sixth straight month as higher interest rates and weaker buyer demand continue to weigh on the once-booming market. The latest PropTrack Home Price Index, released Thursday, shows Brisbane home prices fell 0.2 per cent in September, taking the median value to $1.033m. Brisbane home prices have dropped for a sixth straight month.
Prices are now 3.9 per cent below their March peak, wiping approximately $42,000 from the value of the typical Brisbane home in just six months. Despite the sustained decline, Brisbane values remain 4.1 per cent higher than a year ago. It marks a dramatic turnaround for a housing market that had previously enjoyed more than three years of almost uninterrupted price growth.
Brisbane prices first began falling in April, which was the first monthly drop since November 2022. Brisbane’s median home price dropped 0.2 per cent in September. Picture: Brisbane City Council.
Queensland’s regional markets are proving more resilient, with prices in regional Queensland holding flat over the month — still 6 per cent higher than September 2025, though they are now 1 per cent below peak. The Gold Coast’s median home price slipped 0.09 per cent last month to sit at $1.158m, while Townsville’s median home price fell half a per cent to $626,000, and Cairns remained flat at 671,000. National home prices fell 0.2 per cent to $881,000 in September, according to PropTrack.
Adelaide recorded the largest monthly decline among the capitals, with prices falling 0.6 per cent during the month, followed by Sydney (-0.3 per cent) and Perth (-0.3 per cent). Gold Coast home values slipped slightly in September. Realestate.com.au economist Eleanor Creagh said the downturn reflected a combination of affordability constraints, higher interest rates, elevated living costs, and weaker consumer sentiment — all of which had reduced purchasing capacity and dampened buyer demand.
“The spring selling season has not delivered the usual lift in momentum,” Ms Creagh said. “Auction clearance rates remain soft, homes are taking longer to sell, and sales volumes remain below last year’s levels. Together, these indicators point to weaker buyer demand and a widening gap between buyer and seller price expectations.” The cooling comes in the wake of Tuesday’s 0.25 per cent interest rate hike, with higher borrowing costs increasingly constraining what buyers can afford to pay.
The Reserve Bank has lifted the cash rate by 100 basis points so far this year, increasing repayments for existing borrowers while reducing borrowing capacity for prospective buyers. Realestate.com.au senior economist Eleanor Creagh Ms Creagh said home prices would likely remain under downward pressure over the coming months, with the latest interest rate increase adding to the headwinds. “Further price falls are likely over the coming months as this week’s interest rate rise, tax changes and the cumulative impact of higher borrowing costs weigh on demand,” she said.
“However, resilient employment, limited forced selling and homeowner equity buffers should contain the severity of the adjustment. Reduced buyer purchasing power remains the dominant pressure on prices, rather than large numbers of owners being forced to sell.” LJ Hooker Group head of research Mathew Tiller said home prices were declining as confidence softened, household budgets came under more pressure, and some investors sat on the sidelines because of recent tax changes. “Another rate rise will only add to that pressure,” Mr Tiller said.
“Buyers will be more cautious, while some vendors may simply decide to hold off selling.” The fall comes despite some blockbuster prestige sales at the top end of Brisbane’s market last month, including the $17m sale of 1 Sutherland Ave, Ascot, showing even headline-grabbing multi-million dollar deals were not enough to offset broader weakness.
Source: realestate.com.au
