A recent survey of real estate experts conducted by the Australian Property Institute found that property prices are expected to fall between 8 and 11 percent over the next twelve month period.
The driving factors appear to be increasing mortgage interest rates, inflation and a lack of confidence in the investment property market due to policy changes, the survey found. Statistics recorded by property data company Cotality, indicate Australian property prices have fallen 5.2% since March 2026, so we can expect that decline to continue perhaps until as late as September 2027.
If prices in Sydney and Melbourne fall 11 to 12 percent, we would see median property values down to the level they were in February 2021, according to the API.
But as always, anything is possible in the real estate market. Some experts are suggesting an upturn early in 2027, while others suggest the decline will continue into 2028. If you’re already a property owner, any uplift or decline is horses for courses and if you’re not yet a home owner, the cheaper home prices are working in your favour.
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By Wendy Chamberlain
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