House prices fell in every Australian capital city over the September quarter for the first time in 15 years, according to a recent Domain report. If you’re saving for a home or already own one, you may be wondering what the falls mean for you.
Some people are asking whether to buy now or wait. Others are asking whether to put more into their portfolio instead.
But a single quarter of falls doesn’t make property a poor long-term asset and it doesn’t tell us where prices go next. For most people, property and investing can serve different purposes. Where investing fits depends on whether you’re saving for a deposit, aren’t ready to buy yet or already own a home. We look at each below, along with the risks.
A record quarter for house price falls
Domain’s September 2026 House Price Report found it was only the second time on record that every capital city fell in the same quarter. Combined capital city house prices fell 4.7%, or $59,870, the steepest quarterly decline on record.
Perth had the largest fall at 7.4%, taking its median to $1.115 million. Brisbane’s median fell 5.4%, its first quarterly decline in almost four years. And Sydney’s median dropped 4.7% to $1.66 million, its third quarterly fall in a row. Betashares Chief Economist David Bassanese said falls were likely to continue.
“The combination of higher interest rates, reduced tax incentives for property investors and still poor housing affordability are conspiring to produce one of the sharpest house price downturns in recent decades,” he said.
“With the risk of even further RBA rate hikes, and absent any backdown by the Federal Government on its tax changes, it’s likely property prices will weaken further in the months ahead. A bottom may not come until the RBA is clearly done raising rates, which may not be evident until mid-2027.”
Despite this, getting into the property market is still expensive, with a 20% deposit on the median Sydney house coming in at $332,000. In Melbourne it’s about $203,000, before stamp duty and other costs.
Saving that much can take years, but property isn’t the only way Australians are building wealth.
Many Australians already invest alongside property
A record 11.5 million Australians invest outside their home and super, according to the ASX Australian Investor Study 2026. That’s 54% of adults, up from 10.2 million in 2023, and another 950,000 plan to start in the next year.
Building wealth outside property is now a mainstream choice in Australia, with ETFs accounting for a growing share.
An estimated 2.82 million Australians invest in ETFs, the report found, more than double the number in 2020. Among investors aged 18 to 29, 22% made their first investment in an ETF in 2026, the same percentage as those in residential investment property.
The size of portfolios might also surprise some people. Almost half of all investors in Australia (42%) have portfolios under $100,000.
Where investing can fit
Investing can play a part whether you’re saving for a home, still deciding or already own one. The big differences are how long your money can stay invested and how much volatility you’re comfortable with.
The examples below use Betashares’ Diversified ETFs to show how asset mixes can vary. DVBA has about 60% in growth assets, with bonds and cash making up the balance. DVGR and DVHG have about 75% and 90% in growth assets, respectively, while DHHF is entirely shares.
While you’re saving for a deposit
Some people invest while saving for a deposit, hoping their money will grow. But shares can fall over short periods, and the closer you are to buying, the less time there is to recover from a fall before you need the money.
The Diversified ETFs illustrate how asset mix affects volatility. DVHG has about 90% in growth assets, compared with about 60% for DVBA, with more of DVBA invested in bonds and cash. The more growth-oriented mix may fluctuate more; bonds and cash have historically moved less than shares, though they can still fall and have tended to return less over the long term. That’s the trade-off to consider as your purchase gets closer.
If you aren’t ready to buy yet
If buying is still a while off, investing lets you start building wealth now. You can begin with a small amount and add to it regularly, so your money has the chance to grow while your plans take shape. Many new investors begin with modest amounts; the ASX Australian Investor Study 2026 found that, among Australians planning to invest in the next year, the median starting amount is $690.
Even a small first investment in a diversified ETF gives you exposure to thousands of companies. DVBA, DVGR, and DVHG each hold around 2,500 companies and 12,000 bonds, while DHHF holds around 8,000 companies.
Your funds also stay flexible as your plans change. ETFs can generally be sold on any trading day. If you decide to buy, your portfolio can help fund the deposit (selling may mean paying capital gains tax). If you decide to hold off, it stays invested for your longer-term goals.
When you own a home
When you own a home, investing is a way to build wealth outside it. For many homeowners, most of their wealth is tied up in one asset in one suburb. Having an investment portfolio allows you to build wealth outside of property.
Investing can help you build wealth for goals beyond property, from school fees or a career break to more choice over when and how you retire.
Whether you lean towards a balanced mix like DVBA or a higher-growth option like DVGR, DVHG, or DHHF comes down to your objectives, financial situation and needs, including your timeframe and tolerance for volatility.
Buy, wait or invest?
For most Australians, the answer won’t be just one of them.
The September quarter showed property prices can fall quickly, even in every capital at once. And equities can fall quickly too. In both cases, money with more time ahead of it has a better chance to recover.
A deposit you need next year faces very different risks to money you won’t touch for 10 years. Knowing when you’ll need each part of your money lets you plan around the housing market, whatever it does next.
