Dwelling prices across Australian capital cities fell 1.2% in September from August, marking a sixth straight month of decline and leaving prices 6.4% below their March peak, National Australia Bank said in a Wednesday report.

On a national level, dwelling prices slid 1.1% month over month for an unchanged reading over the year so far, while the median number of days spent on market increased to 41, the highest since late 2020, the bank said.

Among capital cities, Sydney and Melbourne recorded the largest peak-to-trough declines at 8.6% and 7.2%, respectively.

Meanwhile, prices in the previously resilient mid-sized capitals all fell between 1% and 1.5% in September. Brisbane prices are now 5.4% below their recent peak, while prices in Perth and Adelaide are down 6% and 2.9%, respectively.

Amid the sharper slowdown across mid-sized capitals, National Australia Bank said it now expect prices across the eight capital cities to shed 8% over 2026, compared with a previous forecast for a 6% decline.

It added that the stock of residential dwellings under construction remains elevated at around 250,000, which is about 40% higher than the average between 2010 and 2019.