Australian home prices flatline as Sydney and Melbourne values continue to slide

Australian home prices have flatlined overall as higher borrowing costs and tax changes continue to cool demand, with weakness most visible in Sydney and Melbourne, according to Bloomberg’s reporting on the latest market data. The broader slowdown shows how the property market is feeling the combined pressure of expensive mortgages and policy changes that have made some buyers more cautious.

Bloomberg Economics reported that home-price growth weakened across most major cities last month, leaving the national market largely stagnant. The story points to rate hikes as the main drag, because they have lifted monthly repayments and reduced how much buyers can borrow. Tax reforms have added another layer of pressure by affecting demand from investors and other buyers sensitive to after-tax returns.