Sydney Home Prices Fall 7% As Australia Tightens Property Tax Breaks

Sydney home prices have fallen about 7% from a February peak, while 93% of suburbs across Australia's capital cities have also seen price declines, according to ETNet. The drop has been driven by higher mortgage rates and tighter tax concessions for investment properties in the government budget. The housing downturn is starting to hit Australia's major banks, with mortgage applications down as much as 20% since the budget was announced. Sydney developer Bathla Group entered voluntary administration last week with A$3.3 billion in debt, or $2.4 billion, raising concerns that more builders could come under pressure. Affordability is also adding pressure on the Australian government. Demographia's 2024 data showed Sydney's average home price was nearly 14 times residents' disposable annual income, ranking it second only to Hong Kong among global cities. Cotality said Australian home prices have risen about 67% over the past decade, while prices in Brisbane, Adelaide and Perth have more than doubled.