\n<\/p>\n
(Corrects to policy easing, not tightening, in paragraph 2)<\/p>\n
SYDNEY, June 1 (Reuters) – Australia’s home prices flatlined in May \u200cas higher borrowing costs, the Middle East conflict and \u200cplanned tax changes pushed prices in Sydney and Melbourne into sharp declines, data \u200bfrom Cotality showed on Monday.<\/p>\n
The Reserve Bank of Australia has raised interest rates three times this year – in February, March and May – to 4.35% to tame inflation, fully reversing the amount of \u200cpolicy easing made last \u2060year. The conflict in the Middle East has driven energy costs sharply higher, hitting consumer and \u2060business sentiment, and planned changes to property taxes has prompted investor selling.<\/p>\n
KEY DETAILS<\/p>\n
\u2022 National home prices were unchanged in May after a \u200bstreak of \u200bmonthly gains, Cotality data showed. \u200bPrices had been hitting \u200crecord highs since early 2025.<\/p>\n
\u2022 House prices in Sydney and Melbourne fell 0.9% and 0.8% respectively in May, leading declines, and sales volumes dropped. Advertised listings in both cities have climbed to above average levels.<\/p>\n
\u2022 Even more affordable markets in Sydney and \u200cMelbourne, which had been lifted by \u200bgovernment incentives to help young, first-time \u200bbuyers, fell.<\/p>\n
\u2022 Other capital \u200bcities recorded slower gains. Perth prices rose 1.5%, \u200cwhile Brisbane and Adelaide gained 0.9% \u200band 0.5% \u200brespectively, supported by still-low inventory levels.<\/p>\n
\u2022 “While the speed of value change remains very different from city to city, the \u200bdirection is becoming more \u200cconsistent, with most markets losing momentum as demand-side headwinds \u200bintensify,” said Tim Lawless, Cotality’s research director.<\/p>\n
(Reporting by Stella \u200bQiu; Editing by Neil Fullick)<\/p>\n<\/p><\/div>\n