Property prices across every capital city have dropped for the first time in 15 years, according Domain’s House Price Report. This is only the second time that this has happened on record. Across the country, house prices dropped 4.7%, or almost $60,000 in the September quarter. Units fell 3.5%, with only Darwin recording an increase. Higher interest rates, cost-of-living pressures and changes to property investment rules have led to the decline, with low auction clearance rates and houses staying on the market for longer. After four rate hikes this year, buyers have less borrowing power and are more cautious.
Domain House Price Report September 2026 – Melbourne
In Melbourne, the median house price for the September quarter was $1,014,335, a drop of 3.3% (or $34,192) for the quarter. This is the sharpest quarterly fall in four years. The annual change was also negative for the first time in 1.5 years, with house prices does 4.7% ($49,970).
As for units, prices fell by 3.7% ($21,184) to $563,199, the largest quarterly fall in four years. The annual change was a decline of 3.8% ($22,236).
The most expensive areas saw the biggest drops, with house prices in the inner south falling by 7.7%.
Median house prices (September quarter)
- Melbourne – $1,014,335 (-3.3% for the quarter)
- Sydney – $1,661,167 (-4.7%)
- Brisbane – $1,152,122 (-5.4%)
- Adelaide – $1,095,429 (-3%)
- Perth – $1,115,227 (-7.4%)
- Canberra – $1,025,084 (-2.6%)
- Hobart – $790,155 (-3%)
- Darwin – $752,478 (-2.6%)
Median unit prices
- Melbourne – $563,199 (-3.7% for the quarter)
- Sydney – $820,890 (-3%)
- Brisbane – $783,357 (-3%)
- Adelaide – $584,389 (-3.8%)
- Perth – $659,561 (-6.5%)
- Canberra – $485,276 (-4.2%)
- Hobart – $584,127 (-2.7%)
- Darwin – $454,732 (+2.2%)
To read the full report and find prices in your suburb, click here.
