Australian House Price Growth Slows as Rates Climb

By James Glynn

SYDNEY--Australian house prices recorded their slowest growth since January 2025 in April as rising interest rates took a toll on the market.

House prices rose 0.3% in April from March, according to property research group Cotality. The national result was dragged lower by Sydney and Melbourne, where values fell 0.6% over the month.

Sydney home values are now 1.0% below their November peak, while Melbourne values are 1.9% below their November 2025 cyclical high, the data showed.

Every capital city recorded a slower pace of growth in April, but conditions remain highly diverse, Cotality added.

Perth's growth is also clearly losing steam, but the market remains strong with values up 2.1% in April.

Cotality's research director, Tim Lawless, said the easing in market conditions has been building since late last year.

"The housing market was losing momentum from late last year as affordability and serviceability constraints weighed on demand," he said.

"Now we have the additional downside pressure of higher interest rates, sentiment has fallen off a cliff, and rising inflation is set to drive the cost of debt even higher," Lawless said.

The Reserve Bank of Australia is expected to raise interest rates further next week citing growing inflation pressures.

Economists expect inflation to peak at around 5.0% year-on-year in the second quarter, with some expecting the RBA to continue to hike rates through midyear.

-Write to James Glynn at [e-mail]

(END) Dow Jones Newswires

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