With Australia's property market appearing to be in somewhat of a downturn following the federal government's proposed tax reforms, several suburbs have recorded significant price falls, according to the latest industry data.Data from REA Group found that the Sydney seaside suburb of Manly recorded the biggest increase in the share of homes selling below asking price in the last three months, compared with the same period in 2025.The data shows that 46.5 per cent of homes sold below asking price in the three months from March to May, well up from 21.6 per cent of homes in the same period last year.The data looked at suburbs that had more than 30 listings sold over the three-month timeframe The suburb that recorded the biggest price drop was Merrylands-Guildford, which had a 2.2 per cent decline at the end of May compared to the three months to February."What we are seeing here is the modest decline in home prices, even in Sydney and Melbourne which have seen three consecutive price declines, prices are only down about 1.2 per cent across that spam, which is not a big change," Moore said."So what we are seeing at the market is a slow but steady slowing in home prices, really being driven by the fact that we've seen three consecutive rate hikes, probably expecting one more."Moore also noted that housing stocks in Brisbane, Adelaide and Perth remain low, and competition for available properties continues to drive up prices.In Sydney and Melbourne, competition remains strong in suburbs that recorded an increased share of homes being sold below asking prices.On average, it took 31.1 days for properties in the top 10 suburbs/areas to be sold in May