AUSTRALIA / RankWire.AI / – Australia’s residential property market saw a decrease of $34.1 billion in value during the June quarter as nationwide home prices softened. The total worth of the country’s housing stock dropped 0.3%, bringing it to $12.689 trillion. This marks the first quarterly decline in overall dwelling value since September 2022. A peak-to-trough forecast of 10% would equate to approximately $1.3 trillion based on the current national housing stock, highlighting the substantial household wealth held in Australian residential properties.
According to the Australian Bureau of Statistics, households owned $12.183 trillion of residential properties at the end of June. Australia’s housing stock comprised 11.531 million dwellings, which increased by 54,400 during the quarter. The average price per dwelling declined by $8,200, now standing at $1.1004 million. Despite this quarterly decrease, the total value of Australian housing remains 8.5% higher than it was a year earlier. This annual growth follows several years of strong increases across many capital-city and regional property markets.
New South Wales experienced the largest quarterly fall, with total dwelling value dropping by $92.9 billion. Victoria saw a decline of $44.3 billion, while the Australian Capital Territory lost $1.4 billion. In contrast, all other states and territories recorded rises in their residential values. Average property prices also declined in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales still led the nation with an average home price of $1.305 million, with Queensland following at $1.131 million.
National Home Prices Continue Downward Trend
The housing sector’s softness persisted after the June quarter. In August, national average home prices fell by 0.9%, marking the continuation of a five-month streak of monthly declines. AMP’s chief economist Shane Oliver noted that prices had decreased by 3.6% from their peak by the end of August. His forecast indicates a possible national decline of around 10% from peak to trough. When applied to the property market valued at roughly $12.7 trillion, this percentage suggests a drop of nearly $1.3 trillion in residential value.
Interest rates have also increased throughout 2026. The Reserve Bank of Australia has raised the cash rate three times this year, bringing it to 4.35%, with total increases of 75 basis points. As a result, mortgage rates have risen as lenders adjusted their home-loan pricing. Scheduled mortgage repayments now account for nearly their 2024 peak as a proportion of household disposable income. Additionally, the central bank’s August assessment indicated that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Lead the Decline
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 softer conditions, Perth and various regional areas continued to see gains. The pace of growth in some of these stronger markets has also slowed. These variations reveal that Australia’s housing downturn remains uneven across cities and regions, despite broader indications of price weakness at the national level.
The recent declines follow a much larger increase in Australian property values since the pandemic’s onset. In August, national housing prices remained about 5% higher than a year earlier. They are also roughly 50% above the levels recorded at the start of the pandemic. Official dwelling-stock figures for the September quarter are scheduled for release on December 1. Until then, the latest national property valuation remains at $12.689 trillion for June, reflecting the $34.1 billion quarterly decrease.