For Sydney residential property, Cotality recorded dwelling values falling 1.2% in June alone, leaving values 3.7% below their January 2026 peak by the end of Q2. Domain’s quarterly series shows the weakness particularly clearly in houses: Sydney house prices fell 3.3% over the June quarter, while the national capital-city house market declined 1.4%.

Importantly, units have been materially more resilient than houses. Sydney units entered Q2 from a record March-quarter median of $848,227, after 13 consecutive quarters of growth. This affordability differential is increasingly important as higher borrowing costs constrain purchasers.

The Q3 evidence so far reinforces the correction rather than indicating stabilisation. Cotality recorded a further 1.4% fall in Sydney dwelling values in July, taking Sydney to more than 5% below its recent peak. PropTrack independently recorded Sydney prices falling 0.6% in July, its fourth consecutive monthly decline.