Affordable Australian house prices fall faster than luxury homes as property investors retreat

News Corp AustraliaFirst published 26 Oct 2026, 12:30pmRay White chief economist Nerida Conisbee says more expensive houses are now outperforming cheaper houses. OPINION For much of the past year, Australia’s more affordable properties have been outperforming the expensive end of the market. That has now changed. Since the federal budget in May, higher-priced homes have started holding their value better, while cheaper properties have been experiencing sharper declines. The reversal is particularly interesting given how strongly government policy had previously supported the affordable end. The expansion of the 5 per cent deposit scheme in October 2025 brought more first home buyers into the market. Ray White chief economist Nerida Conisbee With lower deposit requirements, no income limits and higher property price caps, more buyers were able to purchase sooner. This created additional demand, particularly for cheaper houses and apartments. As a result, by the start of 2026 the affordable end was outperforming, even as more expensive properties were already starting to decline as interest rates started to increase. Our analysis compares the 25th and 75th percentile of property valu...