National dwelling prices fell by 0.4% in June, which is the largest monthly decline since December 2022. This follows a downwardly revised 0.3% fall in May (previously recorded as flat).
01 July 2026 | 2 mins
14 May 2026
- Dwelling price growth slowed to 0.3% mom in April, the slowest monthly gain since January 2025. Dwelling prices are 9.8% higher over the year. Mid size capitals continued to outperform, while slowing was more evident in Sydney and Melbourne.
- Prices fell 0.6% mom in Sydney and Melbourne and combined with downward revisions, now show a starker loss of momentum. On a 3-month annualised basis, prices fell 3.7% in Sydney and 6.0% in Melbourne.
- Reforms to CGT and negative gearing reduce incentives for low yielding/high debt investment in established property. This is a benefit to broader financial stability, but will likely mean a small decline in house price growth.
- New housing loan commitment values fell 3.8% qoq in Q1, with declines across both owner‑occupier and investor lending. Despite this pullback, lending activity remains around 10% above its mid‑2022 peak.
- The rental market remains tight, with vacancy rates near record lows at 1.7% and advertised rents growth remains strong but edged lower to 5.7% on a 6 month annualised basis in April.
- Dwelling starts have lifted since late 2023, led by apartments, but starts continue to outpace completions amid challenging supply conditions. This has kept the construction pipeline elevated, with ~235k dwellings still under construction, around 35% above the pre-pandemic (2010-2019) average.
- Material input costs (as measured by the PPI) for detached housing construction rose 0.6% in Q1 and are 39% above pre-pandemic levels. These data largely pre-date the conflict. Construction purchase costs in the NAB Business Survey point to some renewed upward pressure.
Click below to read the full NAB Housing Monitor May 2026.
