Australia Home Prices Flatline as Rate Hikes, Tax Changes Weigh

Australian home prices stagnated last month, with growth weakening across most major cities as higher borrowing costs and tax reforms sapped demand.

Sydney and Melbourne led the downturn with declines of 0.9% and 0.8% respectively in May, property consultancy Cotality said in a report Monday. Perth and Darwin outperformed with increases of 1.5% each, followed by Brisbane and Hobart at 0.9% apiece. The combined capitals index fell 0.1%.

“While the speed of value change remains very different from city to city, the direction is becoming more consistent, with most markets losing momentum as demand-side headwinds intensify,” said Tim Lawless, ...