## Australia’s Housing Market Sees Slower Growth in Major Cities
**Sydney, December 1.** Australian home prices recorded another increase in November, though the pace of growth in Sydney and Melbourne showed signs of slowing, according to property analytics group *Cotality*.
### Nationwide Trends
Across Australia, property values climbed for the tenth consecutive month, reflecting a sustained recovery after earlier declines. The growth was led primarily by smaller capitals and regional areas, where buyer activity remained stronger compared to previous months.
### City Performance
In contrast, Sydney and Melbourne experienced modest gains. Analysts attributed the slowdown to affordability challenges, a limited pool of new listings, and higher borrowing costs weighing on buyers.
> “The market continues to grow, but momentum in Sydney and Melbourne is clearly cooling,” said Cotality’s head of research.
### Economic Context
Economists noted that while house prices have broadly risen since early 2023, the impact of rising interest rates and reduced disposable incomes has tempered enthusiasm among urban buyers. Many potential purchasers are delaying decisions in anticipation of slower future growth.
### Outlook
Cotality’s report suggests that regional markets could maintain steady growth into early 2026, supported by migration trends and demand for more affordable homes outside major metropolitan centers.
> “The overall market remains resilient, but we are approaching a phase of softer growth especially in key metropolitan areas,” the report concluded.
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**Author’s summary:** Australia’s home prices continued rising in November, but Sydney and Melbourne saw growth slow as affordability pressures and higher rates tempered demand.
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Reuters on MSN — 2025-12-01