Following the RBA’s six consecutive hikes, high interest rates continue to sweep the Australian property market as 80% of house and unit markets plunge. So, where does this leave potential buyers?

Property prices continue to dip while auction volumes make a comeback with 2,155 auctions held across the combined capital cities this week.

Home values continue to fall across Australia 

home values across australia

CoreLogic’s recent findings showed that 2,405 (79.5%) house and unit markets declined over the September quarter. This left combined capital cities’ dwelling values falling by -4.3% over the quarter.

Across the capital’s house markets, Sydney, Melbourne, Canberra and Hobart each saw 100% of analysed suburbs experience a decline in values over Q3, with Hobart the only city also recording a quarterly decline in all unit markets analysed,” according to Kaytlin Ezzy, CoreLogic’s Economist.

In Sydney, growth declined as house values dipped by -7% over the quarter and -10.1% since the city’s peak in February 2022. In values form, this fall is equivalent to approximately $116,500. Following the downturn was Melbourne as the city recorded a -4.2% downswing.

After significant growth over the past two years, Brisbane’s house values fell by -5.1%, taking the city’s median value under $1,000,000. Then, Perth declined by -0.5% in the September quarter, Hobart with a -4.3% fall in house values and Canberra by -5.2%.

On the other hand, Adelaide’s house values were now -0.5% below the July peak. Defying the trend was Darwin as both house and unit values increased by 1.4% over the quarter.

This analysis shows the effect of the three 50 basis point rate hikes through the September quarter, plus the lagged impact of the first two hikes (totalling 75 basis points) in May and June, so it’s not surprising to see significantly more markets recording a decline in value,” Ezzy said.

Preliminary total auction rate

total auctions oct 24 2022

After falling to 1,742 last week, auction volumes made an upswing as 2,155 auctions were held across the combined capital cities this week. This marked a 23.8% increase from last week but a -28.6% decrease from this time last year, according to CoreLogic’s recent report.

In Melbourne, auction volumes improved from 683 last week to 1,141 this week, making it the city’s busiest week since the week ending 19 of June. Meanwhile, 639 homes went under the hammer in Sydney, a -3.8% decline from last week.

Of the smaller capitals, Brisbane still led the busiest auction week with 148 homes. Following Brisbane was Adelaide with 131 and Canberra with 83. In Perth, 12 auctions were held while Tasmania only had one.

Preliminary total clearance rate

clearance rate oct 24 2022

Of the 1,785 results collected, 62.7% turned out successful – a 1.3% improvement from the 61.4% preliminary clearance rate in the previous week. However, this was a decline from the 78.9% record of last year.

Melbourne cleared 64.6% in the early rates, up by 0.80% from the previous week’s 63.8%. However, Sydney’s preliminary rate went down to 61.6%, just –0.10% shy of last week’s record of 61.7%.

Among the smaller capital cities, Adelaide still recorded the strongest preliminary clearance rate with 75.3% of auctions turned successful. Tailing Adelaide was Canberra with 57.6% and Brisbane with 48.6%.

Meanwhile, after recording six successful auctions in the preliminary rate last week, Perth only sealed the deal on one of the eight auctions collected so far.

With the property market in a downtrend, is 2022 a good time to buy a property? Here’s a recap of Australia’s housing market in September 2022 from It’s Simple’s founder and managing director, Joseph Daoud:

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While interest rates are on the rise, property prices continue to fall. This long-term gain can be worth the short-term pain of the high rate as you secure a property for a cheaper price.

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Source: CoreLogic