Regional markets also lost momentum, with the combined regional index falling by 0.2% in July, its first monthly decline since January 2023. Nationally, upper-quartile values fell 3.2% over the three months to July, while the lower quartile rose 0.3%. In Melbourne, upper-tier values fell by 4.6% over the July quarter, while lower-tier values saw a more modest decline of 1.2%. On a monthly basis, lower-tier values fell in Sydney, Melbourne, Brisbane and Canberra in July, as well as across the combined capital-city index”. AdvertisementReduced borrowing capacity, following the federal budget changes to negative gearing and capital gains tax, has also likely compressed investor demand towards lower-priced properties.