Canberra house prices have fallen by almost $28,000 in three months, while unit prices have dropped to their lowest level in almost five years, according to Domain’s latest House Price Report.

The report, to be released on Thursday (October 22), shows Canberra’s median house price fell 2.6 per cent, or $27,768, during the September quarter to $1.025 million, its sharpest quarterly decline in three-and-a-half years.

House prices are now at a 15-month low, sitting 5 per cent, or $53,635, below their June 2022 peak. Annual house price growth has also turned negative for the first time in 18 months, with prices down 0.9 per cent.

Canberra’s unit market recorded an even steeper quarterly decline of 4.2 per cent, or $21,099, bringing the median price to $485,276.

It was the largest quarterly fall in six-and-a-half years, while unit prices have dropped 6 per cent, or $31,044, over the past year.

Both Canberra houses and units recorded their second consecutive quarter of falling prices.

The downturn reflects a broader national decline, with house prices falling across every capital city for the first time in 15 years.

Combined capital city house prices fell 4.7 per cent during the September quarter, the steepest quarterly decline on record, while unit prices dropped 3.5 per cent.

Perth recorded the largest house price fall at 7.4 per cent, followed by Brisbane at 5.4 per cent and Sydney at 4.7 per cent.

Domain chief residential economist Nicola Powell says higher interest rates, cost-of-living pressures and weaker buyer confidence are contributing to the downturn.

“The balance of power has shifted towards buyers. Homes are taking longer to sell, there is greater scope to negotiate, and sellers are having to be more realistic about price expectations,” she says.

Powell says buyers are likely to remain cautious until there is greater certainty around interest rates, living costs and government policy settings.

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