The bank expects home values across all capitals overall to dip around 5 per cent. Only a month ago, its national forecast was for a 2 per cent drop.

Property values have racked up their biggest fall since Anthony Albanese took office as rates, cost of living and tax changes collide.

Australia's housing downturn is spreading across the country, with the latest property price data showing previously resilient markets that had recently set record-high prices are…