Domain data shows homes in almost all capital cities decreased in value in the last quarter.
Units had the most consistent downturn, reflecting a decrease in interest from investors and first home buyers who typically purchase in lower price brackets.
"Price declines across almost every capital city suggest investors and first-home buyers are becoming more cautious as borrowing costs rise and expectations of future price growth moderate," Domain chief of research Nicola Powell said.
The cautiousness was largely a response to changes to capital gains tax and negative gearing announced in the May federal budget, which have made investing less attractive.
Geopolitical pressures, including material supply constraints due to conflict near the Strait of Hormuz, also played a significant role.
Adelaide and Canberra had the sharpest quarterly downturn in the unit sector last quarter, at 2.8 and 2.5 per cent respectively.
Sydney came in next with a 1.5 per cent decrease, followed by Perth at 1.3 per cent.
The figures are a marked deviation from market trends in the year prior to June, during which apartments in all capitals grew in value.
Dr Powell said the pivot suggested affordability is now the dominant thing shaping markets, as many buyers hit their spending ceiling.
"Strong population growth, limited housing supply and elevated construction costs continue to support prices, but affordability is now the dominant force shaping the market.
Buyers have more choice, less urgency and greater negotiating power than they've had in several years," she said.
Darwin, which continues to be a strong city for investment, is the only place where unit prices grew last quarter. They were up 5 per cent, to a median price of 443,300.
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