Breakfast Briefing | 1 June 2026 | Sydney and Melbourne House Prices Turn

The long-awaited correction in Australian housing is underway, and it is showing up first in our two largest markets.● Sydney average prices dipped 0.9% in May, taking the three-month fall to 2.1%● Melbourne dropped 0.8% in May, with a 2.3% quarterly decline● Auction volumes are at six-year lows as transaction activity retreats● Brisbane, Adelaide and Perth continue to push higherHigher mortgage rates, stretched affordability, and recent Budget changes to how capital gains tax is applied are combining to cool demand in Sydney and Melbourne. The RBA will be watching closely as the housing channel begins to transmit tighter policy more visibly.On the retirement front, industry forecasts point to 2.5 million Australians entering retirement over the next decade. Savers now believe they need 1 million AUD to retire comfortably, yet average balances for those aged 60 to 65 are just 400,000 AUD for men and 315,000 AUD for women, raising real questions about adequacy.Offshore, China's official manufacturing PMI showed the factory sector at a steady state, with services returning to modest growth. In the Gulf, ships are slowly exiting the Strait of Hormuz but the underlying US-Iran standoff remains unresolved. Forecasters are also warning of a developing super El Niño with global impacts expected later this year.Markets: AUD at 71.8 USc, Australian 10-year at 4.84%, US 10-year at 4.45%, gold 4,538 USD/oz, US oil 87.50 USD/bbl, Brent 91 USD/bbl, Bitcoin 73,514 USD.Full report: https://www.interest.com.au/economy/689/china-pmis-steady-little-expansion-house-prices-ease-sydney-melbourne-aussie-super#BreakfastBriefing #RBA #InterestRates #AustralianEconomy #interestcomau #HousingMarket #Superannuation #Property #GlobalMarkets #FinancialNews