Where house prices have fallen the most since the federal budget
House prices in affluent inner-city and waterfront suburbs of Sydney and Melbourne have experienced significant declines over the past two months. Analysts attribute this downturn to the federal government's abolition of tax breaks, which has exacerbated buyer concerns regarding interest rates and economic uncertainty.
Why it matters
The decline in property values in high-end markets signals a cooling effect on the broader real estate sector following major fiscal policy shifts.
Lucy Slade Property reporter Jul 15, 2026 – 5.00am House prices are falling fastest in Sydney and Melbourne’s affluent inner-city and waterfront areas, with some suburbs dropping more than 4 per cent over the two months since Labor’s abolition of tax breaks in the federal budget added to buyer worries about interest rate rises and global uncertainty.
The report relies on data from a provider and links market trends to specific policy changes without inflammatory language.
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