Perth house prices fall 7.4 per cent in the September quarter, the steepest drop on record, Domain reports
Domain's September-quarter report, covered by ABC News, found house prices fell in all eight capitals, the first time in 15 years and only the second on record. Perth's median house price fell 7.4 per cent, or $88,664, to $1,115,227, leaving values 8 per cent below the March 2026 peak, Domain reported. Combined capital house prices fell 4.7 per cent, or $59,870, the steepest quarterly decline Domain has recorded, and units fell 3.5 per cent. Brisbane fell 5.4 per cent to $1.15 million. Cotality's index, released on 1 October, showed Perth down 1.2 per cent in September and 4.7 per cent over the quarter, with a median of $975,022 and values still about 10.1 per cent above a year earlier. MacroBusiness reported on 20 October that Perth leads the national decline.
Interest rate rises and falling affordability cut the pool of buyers who can borrow, and Perth and Brisbane had risen fastest, so they have the furthest to fall. Different indexes use different methods and dates, so Domain's 7.4 per cent and Cotality's 4.7 per cent for Perth are not the same measure.
Owners are unlikely to see a change in their mortgage repayments from the fall alone, but buyers in Perth and Brisbane may find more room to negotiate. Anyone with a high loan relative to the value should check their lender's rules and how much equity they have.
Domain's analysts and Cotality's Gerard Burg link the falls to higher interest rates, lower affordability and cost-of-living pressure, describing a market correction after rapid gains.
A Domain-cited expert told reporters the 7.4 per cent fall in Perth is more drastic than what he sees on the ground, suggesting sales volumes and listings matter as much as medians. Cotality's numbers are smaller, which indicates the severity depends on the index used.
Confirmed: Domain's record quarterly falls in Perth and across the capitals. Not confirmed: whether the decline continues through summer, since the series differ. Watch for Cotality's November index and the next Reserve Bank decision.
DailyDrop Australia edition No. 19 · Morning · FRI., OCT. 23, 2026