Home prices fall in half Aus capitals - the other half hit records

Australia’s capital city home prices show a stark divide in May 2026, with Melbourne’s median house price falling below $1 million to $995,000, while Brisbane and Perth hit record highs, including houses now costing $241,000 more than Melbourne equivalents. Sydney remains the most expensive market at $1.238 million for all dwellings, but the Gold Coast is closing in and could surpass it within a year, driven by affordability challenges and limited housing supply." "article": "Australia’s capital city housing market has split sharply, with four cities seeing price declines and four others hitting record highs, according to the latest PropTrack Home Price Index for May 2026. The national median home price remains flat at $908,000, but Melbourne’s median house price has crashed below $1 million to $995,000, the lowest in the dataset, while its all-dwellings median sits at $846,000 after four years of stagnation. The gap between Brisbane and Melbourne has widened dramatically, with Brisbane houses now priced $241,000 higher than Melbourne’s, reversing a trend from just five years ago. Sydney’s all-dwellings median stands at $1.238 million, down 1.2% from its February peak, while auction clearance rates have dropped below 50%. The Gold Coast, with a median of $1.45 million, is rapidly catching up and could overtake Sydney as the most expensive market within a year. PropTrack senior economist Angus Moore noted that Sydney’s high costs reflect a severe housing shortage, emphasizing the need for more construction to accommodate demand. Canberra experienced the largest monthly decline in May, falling 0.4% to $869,000, with units losing $1,700 in value over the past year. Perth, despite a 99.8% rise over five years, has also seen recent declines, though a full price crash is unlikely due to strong labour markets, household equity buffers, and supply constraints limiting new home construction. Meanwhile, Brisbane, Perth, and Adelaide have more than doubled in value since early 2020, coinciding with aggressive rate hikes. Brisbane’s all-dwellings median now sits at $1.08 million, with houses at $1.236 million. Moore warned that further price drops may occur due to three rate hikes this year and an expected fourth, though the impact is expected to be moderate. Victoria leads in first-home buyer activity, offering a rare bright spot amid the broader market shifts. The divide between rising and falling markets underscores Australia’s uneven housing landscape, driven by regional demand, affordability pressures, and policy constraints.