Housing market conditions continue to vary significantly between property types and locations, with new PropTrack data showing national median house prices have softened while unit values remain higher than a year ago. The figures reinforce the increasingly uneven nature of the market, where weaker conditions in some major capitals are being balanced by stronger results in other cities and regional areas.
National median house prices are now 0.4% lower than at the same point last year, according to PropTrack. Median unit prices, however, are 1.8% higher over the same period. The divergence between houses and units suggests affordability may be influencing buyer behaviour, particularly where detached housing has moved beyond the budgets of a growing number of purchasers.
September brought modest weakness across the larger capital-city house markets, with all recording small declines during the month. A monthly fall does not necessarily establish a longer-term trend, however, and the annual figures show considerably more variation. Over the past 12 months, only Sydney, Melbourne and Canberra have recorded lower median house prices.
Sydney experienced the largest annual decline among those markets, with median house prices down 6.5%. Melbourne was close behind with a 6.2% fall, while Canberra values declined 3.5%. These movements stand in contrast to Brisbane, Adelaide, Perth, Hobart and Darwin, where median house prices remain above their levels from the same time last year.
The difference between cities is important for buyers and sellers assessing broader commentary about a softer national housing market. A national median can indicate the general direction of conditions, but it does not mean every city, suburb or property type is experiencing the same movement. Buyers in Brisbane or Adelaide, for example, may face a very different environment from purchasers in Sydney or Melbourne.
Unit markets are displaying a similarly mixed pattern. PropTrack’s figures indicate units have been more resilient nationally, with the median 1.8% higher than a year earlier. Relative affordability may be contributing to that performance. As detached houses become increasingly expensive in many established locations, buyers who want to remain close to employment, transport and services may consider apartments and other higher-density housing instead.
PropTrack Senior Economist Eleanor Creagh says Sydney and Melbourne remain the markets furthest below their previous peaks. Their weaker performance has had a significant influence on combined capital-city results, given the size of those housing markets. However, conditions outside the capitals have remained considerably stronger.
Regional property prices were unchanged during September but remained 5.1% higher than a year earlier. By comparison, prices across the combined capitals recorded an annual decline of 1.6%. That gap demonstrates the resilience of regional markets and suggests the geographic changes in housing demand seen in recent years have not completely disappeared.
Regional performance can reflect a range of influences. Relative affordability remains important, particularly for buyers who have flexibility over where they live and work. Lifestyle considerations, employment opportunities, infrastructure investment and limited housing supply can also support prices in individual regional centres. The result is a market that cannot easily be described through one national figure.
For prospective buyers, softer conditions in some markets can create opportunities, but headline price declines should not be interpreted as meaning every property is automatically better value. Quality homes in tightly held locations can continue to attract strong competition even when broader medians are falling. Conversely, properties with compromises may experience greater price sensitivity when buyers have more choice.
Sellers also need to recognise the increased importance of local evidence. Pricing expectations formed during stronger market conditions may no longer align with recent comparable sales, particularly in cities where values have declined over the past year. Accurate pricing can become more important when buyers are cautious and have access to a larger pool of competing properties.
The distinction between houses and units adds another layer. National house prices being 0.4% lower while units are 1.8% higher suggests buyers may increasingly differentiate between dwelling types according to affordability and location. That does not mean units will outperform houses everywhere, but it demonstrates why property-level analysis matters.
PropTrack’s latest figures ultimately point to a fragmented housing market rather than a uniform downturn. Sydney, Melbourne and Canberra have recorded annual house-price declines, while Brisbane, Adelaide, Perth, Hobart and Darwin remain above last year’s levels. Regional markets have been stronger again, maintaining annual growth of 5.1% compared with a 1.6% decline across the combined capitals.
For buyers and sellers, the message is that national headlines provide context rather than a complete picture. Property type, city, suburb and individual asset quality continue to shape outcomes, making local market evidence increasingly important as conditions adjust.
