AUSTRALIA / RankWire.AI / – Australia’s residential property market saw a $34.1 billion reduction in overall worth during the June quarter amid a nationwide slowdown in home prices. The total value of the country’s housing stock declined by 0.3%, bringing it to $12.689 trillion. This marks the first quarterly decrease in total dwelling value since September 2022. A separate forecast suggests that a 10% peak-to-trough price decline would amount to roughly $1.3 trillion when considering the current national housing stock. These figures highlight the significant household wealth concentrated in Australian residential properties.
The Australian Bureau of Statistics reported that households held $12.183 trillion worth of residential real estate at the end of June. Australia’s housing stock consisted of 11.531 million dwellings, an increase of 54,400 during the quarter. The average price per dwelling dropped by $8,200 to $1.1004 million. Despite this quarterly decrease, the total value of Australian homes remained 8.5% higher than it was a year earlier. This annual growth follows several years of strong expansion across numerous capital-city and regional property markets.
The largest quarterly drop in total dwelling value was recorded in New South Wales, with a decline of $92.9 billion. Victoria experienced a decrease of $44.3 billion, while the Australian Capital Territory saw a reduction of $1.4 billion. In contrast, all other states and territories reported increases in their total residential property values. Prices also declined in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales maintained its position as the most expensive market with an average dwelling price of $1.305 million, followed by Queensland at $1.131 million.
National Housing Prices Continue Downward Trend
The housing market’s softness persisted after the June quarter. In August, the national average home price declined by 0.9%, marking the continuation of a five-month pattern of monthly decreases. AMP chief economist Shane Oliver indicated that prices had fallen 3.6% from their peak by the end of August. His forecast suggests a nationwide decline of about 10% from peak to trough. Applied to the roughly $12.7 trillion worth of properties, this percentage translates to nearly $1.3 trillion in residential value lost.
Interest rates have also increased throughout 2026. The Reserve Bank of Australia has elevated the cash rate three times this year, bringing it to 4.35%. These increases total 75 basis points. Consequently, mortgage rates have risen as lenders adjusted their home loan pricing following the rate hikes. Scheduled mortgage repayments are nearing their 2024 peak as a proportion of household disposable income. The central bank’s August assessment also indicated that national housing prices are currently 1.6% below their March peak.
Sydney and Melbourne Lead the Decline in Property Values
Among Australia’s major markets, Sydney and Melbourne have experienced the most significant recent drops in home prices. Auction clearance rates have also fallen below their long-term averages. While Brisbane and Adelaide have shown more subdued conditions, Perth and several regional areas continue to post gains. Growth in some of these stronger markets has slowed, underscoring that Australia’s housing downturn remains uneven across cities and regions, despite broader signs of price weakness nationwide.
These recent declines follow a substantially larger increase in Australian property values since the onset of the pandemic. As of the August assessment, national housing prices were approximately 5% higher than the previous year. They also remain roughly 50% above the levels recorded at the start of the pandemic. Official figures for dwelling stock in the September quarter are scheduled to be released on December 1. Until then, the latest available national property valuation remains at $12.689 trillion, reflecting the $34.1 billion quarterly decrease.