Why the Property Downturn Isn’t Hitting Every Client the Same Way, and What That Means for Your Referrals
Quick answer: New data from Cotality shows Australia’s property downturn is now being led by premium properties, with upper-quartile houses in Sydney and Melbourne down more than 10% from their peak, while more affordable homes and units are holding up far better. For referral partners, this means the right advice, and the right broker conversation now depends heavily on which segment your client sits in.
“The market’s slowing” isn’t specific enough anymore. The latest Cotality Housing Chart Pack shows the downturn has a clear shape, premium properties falling hardest, affordable homes and units holding up far better. Here’s what that means for the clients you’re referring our way.
The numbers, briefly
- Upper-quartile house values are down 10.7% in Sydney and 10.5% in Melbourne from their peak
- The gap between upper and lower-quartile house declines has reached 6.6 percentage points in Melbourne and 5.3 in Sydney, but less than one point in Perth, Adelaide and Brisbane
- National dwelling values fell 3.1% over the three months to August
- Median time on market has stretched from 28 to 39 days
- Vendor discounting has widened to 4.2%, the highest since January 2023
- Listings are up 18.1% year-on-year, giving buyers more choice than they’ve had in years
The takeaway: this isn’t a uniform slowdown. It’s a market moving at different speeds depending on price point and city, which is exactly the kind of nuance clients don’t pick up from headlines.
For real estate agents
Premium vendors are facing longer selling periods and bigger discounts, which can catch them off guard. Finance-ready buyers with clear pre-approval matter more than ever, and pointing vendors toward a broker conversation for their own next move helps the whole transaction run smoother.
For buyer’s agents
More listings and softer conditions at the top end give your clients real negotiating leverage. But it only holds if finance is sorted before they’re at the table. Clients with pre-approval can move fast when the right property appears, instead of losing it to hesitation.
For conveyancers
Longer settlements and more private treaty sales mean more purchases coming through with finance conditions still attached. Clients with early structuring guidance tend to reach unconditional faster, less back-and-forth for you.
For accountants
Clients who bought premium property near the peak may have less equity than they assume, worth flagging for anyone weighing up refinancing or using property equity in a broader strategy.
For sellers
Owners of higher-value property may be underestimating how far the top end has shifted. Worth a conversation on current value before they decide their next move.
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Every one of these conversations lands in the same place: clients making a property decision right now benefit from clarity before they commit, not after. That’s the conversation we’re set up to have.
If a client of yours is weighing up a move in this market, we’re always happy to have that first conversation with them, no pressure, just clarity on where they actually stand. Book your FREE CONSULTATION with Loan Lounge.