Australia's housing market downturn is expanding beyond Sydney and Melbourne, with property prices falling in other major cities such as Brisbane and Adelaide. According to the latest data from property analytics firm Cotality, national property prices dropped by 0.7% in July 2026, marking the largest monthly decline since December 2022.

Brisbane and Adelaide experienced price falls of 0.6% and 0.2% respectively, continuing a second consecutive month of declines after revisions to June data. Gerard Burg, Cotality's head of research, described the rapid deterioration in Brisbane's market conditions as "probably the most surprising trend" in recent months. He noted that the total stock available for sale in Brisbane shifted from about 25% below the five-year average in February to approximately 6% above it now.

Burg also indicated that while property values are likely to keep declining nationwide, more sellers may withdraw from the market due to reluctance to incur losses. A now-independent economist highlighted fears among investors and owner-occupiers that interest rates could rise further, despite broad expectations that rates will remain steady following the Reserve Bank of Australia's (RBA) meeting on August 11, 2026.

Economist Oster warned that if the unemployment rate reaches 5%, it would signal proximity to a recession. In such a scenario, he anticipates a property market correction with price falls of 10% or more from recent peaks.

The ongoing policy changes continue to impact market sentiment as buyers remain limited and vendors reconsider selling amid challenging conditions.

Sources