Global House Prices and City Rankings — 2026-10-29

Top developments

Australian capitals see first simultaneous price drop in 15 years

For the first time in 15 years, house prices fell in every Australian capital city in the September quarter, driven by interest rates squeezing borrowing capacity. Sydney prices dropped 4.7% to $1.66 million, hitting a two-year low, while other capitals similarly retreated. This synchronized decline signals a severe cooling across the entire national market.

U.S. affordability strained despite nominal price drops

The ATTOM Q3 2026 Home Affordability Report reveals that a 2% year-over-year decline in median U.S. home prices was insufficient to improve affordability. Rising mortgage rates and inflation have offset the benefits of lower nominal prices, leaving buyers in a "deep freeze."

Germany’s Munich remains Europe’s most expensive new-build city

The Deloitte Property Index 2026 confirms Munich as Europe’s most expensive city for new residential construction, with prices reaching €11,200 per square meter. This ranking highlights the persistent gap between German high-cost hubs and other European capitals, even as some local markets cool.

Local view

Canada: The Bank of Canada’s recent rate hike is expected to further suppress the housing market, with officials warning of a "subdued" outlook. Higher borrowing costs are compounding pressures from rising construction material prices, making homeownership increasingly difficult for average buyers.

Germany: Local media report that while purchase prices in Germany’s seven most expensive cities are stagnating or falling due to high interest rates, rents have surged by 4.5%. This divergence is shifting the burden to tenants, as buyers retreat from the market.

Context & numbers

Australia: The synchronized drop across all capital cities marks a historic shift, with Sydney leading the decline at 4.7%. This contrasts sharply with previous quarters where some regional markets showed resilience.

United States: Annual U.S. house price growth slowed to its weakest September pace since 2011, according to First American Data & Analytics. While nominal prices rose slightly in August, they fell behind inflation for the 15th consecutive month, indicating real-terms declines.

Iberia: Central bank governors from Portugal and Spain warn that housing shortages remain the primary domestic risk, with Portugal alone lacking approximately 300,000 homes. They advocate for increased construction and public housing interventions to stabilize the market.

On the radar

• Singapore: The Urban Redevelopment Authority (URA) has scheduled system maintenance for its e-Services portal on October 30, 2026, which may affect access to Q3 real estate statistics and transaction data.
• Japan: Recent data on rental apartment trends in major Japanese cities for September 2026 has been released by At Home, offering insights into domestic rental market shifts ahead of further global index updates.