AUSTRALIA / RankWire.AI / – Australia’s property market saw a decrease of $34.1 billion in total value during the June quarter as nationwide home prices weakened. The country’s residential property holdings declined 0.3%, bringing the total to $12.689 trillion. This decrease marked the first quarterly fall in overall dwelling worth since September 2022. A separate forecast suggests a peak-to-trough decline of 10%, which would amount to approximately $1.3 trillion when measured against the current national housing stock. These figures highlight the significant amount of household wealth invested in Australian residential property.
According to the Australian Bureau of Statistics, households held $12.183 trillion worth of residential property at the end of June. The country had a total of 11.531 million dwellings, reflecting an increase of 54,400 units during the quarter. The average price per dwelling decreased by $8,200, now standing at $1.1004 million. Despite the quarterly decline, the total value of Australia’s housing stock remained 8.5% higher than it was a year earlier. This annual growth followed several years of robust expansion across many capital-city and regional housing markets.
New South Wales experienced the largest quarterly decrease in total residential property value, with a drop of $92.9 billion. Victoria saw a decline of $44.3 billion, and the Australian Capital Territory lost $1.4 billion. Conversely, all other states and territories recorded increases in their total residential values. Prices also declined in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales still led the nation with an average dwelling price of $1.305 million, with Queensland close behind at $1.131 million.
National Home Prices Continue to Fall
The housing market’s weakness persisted after the June quarter. In August, the average national home price dropped 0.9%, marking a continuation of a five-month streak 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 a possible nationwide decline of about 10% from peak to trough. When applied to the property market valued at roughly $12.7 trillion, this percentage equates to nearly $1.3 trillion in residential property value.
Interest rates have also risen throughout 2026. The Reserve Bank of Australia increased the cash rate three times this year, reaching 4.35%. These moves total 75 basis points. As a result, mortgage rates have risen as lenders adjusted their home-loan pricing following the rate hikes. Scheduled mortgage repayments are now approaching their highest levels of 2024 as a share of household disposable income. The August assessment by the central bank also revealed that national housing prices are currently 1.6% below their March peak.
Sydney and Melbourne Lead Declines in Property Values
Among Australia’s major markets, Sydney and Melbourne have experienced the most significant recent declines in home prices. Auction clearance rates have also dipped below their long-term averages. Meanwhile, Brisbane and Adelaide have seen softer market conditions, while Perth and several regional areas continue to show growth. The pace of growth in some of these stronger markets has slowed. These variations illustrate that the housing downturn in Australia remains uneven across different cities and regions, despite broader national trends indicating falling prices.
These recent declines follow a much larger increase in property values since the onset of the pandemic. As of August, national housing prices were approximately 5% higher than a year earlier. They also remain roughly 50% above the levels recorded at the pandemic’s start. Official figures for the September quarter’s dwelling stock will be released on December 1. Until then, the latest national property valuation stands at the $12.689 trillion recorded for June, reflecting the $34.1 billion quarterly decrease.