Australian Property Market Wrap: October 2026

Last updated: 17 October 2026. Figures cover September 2026 unless stated.

The short version: values eased for a sixth straight month, homes are taking longer to sell, and rents are still rising, just more slowly.

We read the numbers so you don’t have to. This month’s come from Cotality’s Home Value Index for September and its October Monthly Housing Chart Pack, PropTrack’s Home Price Index and SQM Research’s vacancy rates. We’ve also folded in the Reserve Bank’s latest decision and our own private sale tracking.

What home values did

National home values fell 1.1% in September. That’s the sixth monthly fall in a row, and values now sit 5.2% below their March peak. Over a full year they’re flat (0.0%), because the falls since autumn have wiped out the gains from late last year.

PropTrack’s Home Price Index, which is built a different way, tells the same story with a gentler slope. It has national prices down 0.2% in September, also the sixth monthly fall in a row, 3.3% below the March peak and up 0.1% over the year. The capitals are down 1.6% over the year on PropTrack’s numbers, while regional prices are 5.1% higher.

The capitals did most of the falling. Combined capital city values dropped 1.2% for the month and are 1.8% lower than a year ago. Sydney fell 1.4% (down 7.0% over the year) and Melbourne 0.7% (down 6.2%). Brisbane, Perth and Adelaide all fell more than 1% in September, but they’re still well ahead of a year ago: Perth by 10.1%, Adelaide by 6.5% and Brisbane by 5.9%. Hobart slipped 0.5%, Canberra 1.1%, and Darwin was the only capital to rise (up 0.4%).

Regional Australia is holding up better. Regional values eased 0.7% in September but are still 5.6% higher than a year ago.

Why the slide? Borrowing got dearer. The Reserve Bank lifted the cash rate to 4.60% on 29 September, its fourth rise this year, and Cotality estimates the rises since February have cut a typical household’s borrowing capacity by about $90,000.

What it means if you’re selling

Buyers have more choice and more time. Total listings are up 19.1% on a year ago, September sales were down about 21% on the same month last year, and homes are typically taking 41 days to sell, up from 26 days this time last year. The four-week average auction clearance rate has fallen from 64.4% in late February to 48.3%.

Discounting has widened too. The typical vendor discount (the gap between first asking price and sale price) is 4.2% nationally. Across the capitals it’s 4.4%, the highest in five years.

Price to this month’s evidence. Recent sales in your street matter more than the price you had in your head in March, and buyers are checking the same numbers.
Plan for six weeks or more and set your budget for advertising and holding costs with that in mind.
Presentation matters more when there’s more to choose from. Good photos and a clear floorplan help yours stand out on a crowded results page.
Watch your costs. On an $800,000 sale, a 4.2% discount is about $33,600 off the first asking price. Most agents charge 2% to 3% commission on top of that, and at 2.5% that’s another $20,000. You can see how agent commission compares by state, and when the market is giving less, a flat fee keeps more of the sale price in your pocket.

Nobody can call the bottom, and after six months of falls, waiting for a better market is a bet rather than a plan. A realistic price and a well presented home still sell. Our guide to selling your house fast goes through the practical steps.

Private sale industry snapshot

New private sale listings are up about 18% on a year ago

Across seven of Australia’s main private sale companies, ours included, new for-sale listings ran at around 134 a week in the four weeks to 12 October, up from about 114 a week in the same four weeks of 2025. Over the three months to September the rise was about 24%.

In the four weeks to 11 October, Cotality’s October Chart Pack counted new listings across the whole market, agents and private sellers together, 7.9% lower than a year earlier.

Fewer homes are coming onto the market overall, but a bigger share of the owners who are selling are choosing to do it themselves. It’s our own count, so you won’t find it in the usual market reports. We’ll update it here every month.

Source: PropertyNow private sale market tracking across seven private sale companies, since July 2023. New listings only, not sales.

What it means if you’re a landlord

Rents are still rising, just not as fast. National rents rose 0.5% over the September quarter and are 5.5% higher than a year ago. Gross rental yields have climbed to 3.85%, the highest since August 2019, because values have fallen while rents kept going up.

The rental market has loosened a little. National vacancy is around 2%, up from 1.5% in February but still well below the pre-COVID decade average of 3.3%. SQM Research, which counts vacancy differently, has it at 1.4% in September, up from 1.3% in August. The two measures sit at different levels, but both are moving the same way. Tenants have a little more choice than they did earlier in the year, mostly in Sydney and Melbourne so far.

For you that means a few things:

Price off current comparable listings rather than last year’s increases. A home priced a little high now sits empty for longer, and an empty week costs more than a slightly lower rent.
Present it well and respond quickly. Tenants have a bit more choice than they did in autumn.
Check your loan if you’ve got one. Four rate rises this year change the numbers, and a mortgage broker or your accountant can work through what they mean for you.

Properties advertised with us typically lease in around 17 days, and our article on how long it takes to rent out a property explains what speeds that up.

One number worth remembering

41 days. That’s how long a typical Australian home took to sell over the three months to September, up from 26 days a year earlier. If someone at a barbecue tells you homes are “flying out the door”, that’s your answer.

Bottom line

The market is softer than it was in autumn, mostly because higher interest rates have thinned out buyers. It’s still a good time to sell or lease if you price from today’s evidence and present the place well, and every dollar of commission you don’t pay matters more when buyers are negotiating harder.

We’ll update this wrap early each month when the new figures come out.

What’s your place worth this month?

National figures only tell you so much. A free property value report gives you a current estimate for your own home.

Get your free property value report

FAQ

Are Australian house prices still falling?

Yes. Cotality’s Home Value Index fell 1.1% nationally in September 2026, the sixth monthly fall in a row, and values are 5.2% below their March 2026 peak. Over the year national values are flat, and Perth, Adelaide, Brisbane, Hobart and Darwin are still higher than a year ago.

How long is it taking to sell a house in Australia?

Typically about 41 days nationally over the three months to September 2026, up from 26 days a year earlier. Perth was the quickest capital at 26 days and Canberra the slowest at 50.

Are rents still going up?

Yes, but more slowly. National rents rose 0.5% in the September quarter and 5.5% over the year. Vacancy has risen to around 2%, still below the pre-COVID average of 3.3%.

What is the cash rate now?

4.60%, after the Reserve Bank raised it by 0.25 percentage points on 29 September 2026, its fourth increase this year.