Australia’s residential property market is experiencing its most rapid decline on record, with prices falling across all capital cities simultaneously for the first time in 15 years, industry experts have reported.
According to data presented by Jason Pellegrino, president of property portal Domain, housing prices dropped 4.7 percent over the September quarter, signaling a significant downturn in the real estate sector. Speaking at the Property Council Congress in Brisbane on Wednesday, Pellegrino described the synchronized decline across every capital city as “deeply rare,” highlighting the severity of the market contraction.
Former opposition leader Peter Dutton warned that the sector has entered a “new and dangerous” phase, attributing the slump in part to recent federal budget measures. Changes to negative gearing, capital gains tax, and self-managed superannuation funds have, he said, undermined consumer confidence and led builders and developers to reduce supply chains. Dutton addressed property developers who have expressed concern that these tax adjustments could impede the Albanese government’s goal of constructing 1.2 million new homes by mid-2029.
Pellegrino emphasized the need for decisive government action to restore economic growth, suggesting that policy decisions will likely be unpopular but necessary. “We have to make some hard calls,” he said, urging for robust reforms to radically transform Australia’s economic landscape.
David Harrison, chief executive of property fund manager Charter Hall, echoed the call for fiscal restraint, advocating for spending cuts at both state and federal levels. Harrison warned that without austerity measures, inflation and elevated interest rates could persist, as the Reserve Bank would be compelled to maintain a tightening monetary policy. “This country can’t continue to afford excessive spending,” he stated, underscoring the risk of ongoing high inflation and interest rates.
Meanwhile, Andrew Liveris, president of the Brisbane 2032 Olympics organising committee, outlined plans to leverage emerging technology sectors to boost sponsorship revenue. Amid the upcoming departure of CEO Cindy Hook at the end of her contract, Liveris revealed efforts to engage leading artificial intelligence companies, aiming to position Brisbane as host of the first-ever “AI Games.” He noted that integrating AI and digital elements into the Games would enhance the city’s profile while ensuring commercial partnerships help keep the event cost-neutral for taxpayers.
Liveris described Hook’s exit as an opportunity to transition the organising committee into a new phase focused on securing further commercial deals and finalising preparations for the Olympic event.
The combination of rapid property price declines and political debates over fiscal policy underscores the challenges confronting Australia’s housing market and broader economy as it navigates a period of significant adjustment.