The Australian housing market has entered a period of cooling as the "big two" cities, Sydney and Melbourne, hit a near-standstill, according to data from Cotality.
Despite a national value increase of 0.8% in January, the rolling quarterly growth rate slowed to 2.4%, signaling a shift in momentum.
Property values in Sydney edged up by a marginal 0.2%, while Melbourne saw a mere 0.1% gain over the last three months, highlighting their sensitivity to shifting economic headwinds.
The deceleration comes as all "Big Four" banks anticipate a Reserve Bank U-turn.
Following "hot" inflation data—which hit 3.4% in the December 2025 quarter, exceeding the RBA’s 3.2% target ceiling—expectations are mounting for an interest rate hike as early as this week.
