AUSTRALIA / RankWire.AI / – Australia’s property market saw a decrease of $34.1 billion in value during the June quarter as home prices eased across the country. The total residential property stock shrank 0.3% to $12.689 trillion, marking the first quarterly drop in overall dwelling value since September 2022. A forecast projecting a 10% peak-to-trough price decline would correspond to approximately $1.3 trillion when measured against the current national housing stock. These figures highlight the substantial household wealth embedded in Australian residential real estate.
According to the Australian Bureau of Statistics, households held $12.183 trillion worth of residential properties at the end of June. During this period, Australia’s dwelling stock increased by 54,400 units, reaching a total of 11.531 million dwellings. The average home price declined by $8,200 to $1.1004 million. Despite this quarterly decrease, the overall value of Australian housing remained 8.5% higher than the same period last year, following years of strong growth across numerous capital city and regional markets.
The largest quarterly decrease in total dwelling value was recorded in New South Wales, which fell by $92.9 billion. Victoria saw a decline of $44.3 billion, while the Australian Capital Territory experienced a reduction of $1.4 billion. Conversely, every other state and territory reported growth in their total residential value. Average home prices also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining the highest average at $1.305 million. Queensland ranked second, with an average of $1.131 million.
National housing prices continue downward trend
The weakness in the housing market persisted after the June quarter, with national average home prices dropping 0.9% in August, marking the fifth consecutive month of monthly declines. Shane Oliver, chief economist at AMP, stated that prices had fallen 3.6% from their peak by the end of August. His forecast indicates an overall national decline of around 10% from peak to trough. Applied to the roughly $12.7 trillion worth of property, this percentage equates to nearly $1.3 trillion in residential value.
Interest rates have also risen throughout 2026. The Reserve Bank of Australia has increased the cash rate three times this year, bringing it to 4.35%, with these moves totaling 75 basis points. Following these adjustments, mortgage rates increased as lenders revised home-loan pricing, causing scheduled repayments to approach their 2024 peak as a proportion of household disposable income. The central bank’s August assessment also indicated that national housing prices were 1.6% below their March peak.
Sydney and Melbourne experience the most significant declines
Among Australia’s major markets, Sydney and Melbourne have reported the most notable recent drops in home prices. Auction clearance rates have also fallen below their long-term averages. While Brisbane and Adelaide have exhibited softer conditions, Perth and several regional areas have continued to record gains. Growth in some of these stronger markets has slowed, illustrating that Australia’s housing downturn remains uneven across different cities and regions, despite broader signs of price weakening at the national level.
These recent declines follow a much larger increase in Australian property values since the onset of the pandemic. In August, national housing prices remained approximately 5% higher than a year earlier and roughly 50% above their pre-pandemic levels. Official figures for September’s dwelling stock are scheduled for release on December 1. Until then, the latest national property valuation continues to be the $12.689 trillion recorded for June, which includes the $34.1 billion quarterly decrease.