Australian Housing Market Growth Hits Multi-Month Low as Borrowing Costs Bite

Australia's residential property market experienced a significant cooling period in April, with price growth hitting its slowest pace since January 2025. The slowdown is primarily attributed to the pressure of rising borrowing costs, which have eroded purchasing power and dampened demand across several key urban centers. According to the latest data from property consultancy Cotality, every major capital city reported a deceleration in growth. The trend highlights a growing divergence between Australia's largest metropolitan areas and smaller capital cities, as the impact of monetary tightening manifests unevenly across the continent. The two largest markets, Sydney and Melbourne, both recorded price declines of 0.6% for the month. In contrast, Perth emerged as the strongest performer with a 2.1% increase. Brisbane and Adelaide also maintained positive momentum, both posting gains of more than 1%. Despite the weakness in the primary hubs, the combined capitals index remained marginally positive, edging up by 0.2%. The data suggests that while the broader market is resisting a full-scale downturn, the concentration of value in Sydney and Melbourne makes their decline a critical indicator for the overall health of the Australian mortgage sector.