AUSTRALIA / RankWire.AI / – Australia’s property market experienced a $34.1 billion reduction in value during the June quarter as home prices declined across the country. The total value of the nation’s residential properties decreased by 0.3%, reaching $12.689 trillion. This marked the first quarterly decline in overall dwelling worth since September 2022. A forecast indicating a 10% peak-to-trough price decrease would correspond to roughly $1.3 trillion when measured against the current national housing stock. These figures highlight the substantial amount of household wealth invested in Australian residential real estate.
According to the Australian Bureau of Statistics, household-held residential properties totaled $12.183 trillion at the end of June. During this period, Australia’s housing stock increased by 54,400 dwellings, bringing the total to 11.531 million. The average house price declined by $8,200, now standing at $1.1004 million. Despite the quarterly drop, the total housing value remains 8.5% higher than it was a year earlier, reflecting several years of robust growth in many regional and capital city markets.
The largest quarterly decrease in total property value was recorded in New South Wales, with a fall of $92.9 billion. Victoria experienced a decline of $44.3 billion, while the Australian Capital Territory saw a reduction of $1.4 billion. Conversely, all other states and territories saw an increase in residential property values. Average home prices also declined in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales continues to lead the nation with an average house price of $1.305 million, followed by Queensland at $1.131 million.
National Housing Prices Continue Their Downward Trend
Housing market weakness persisted beyond the June quarter, with national average home prices dropping 0.9% in August, marking the fifth consecutive month of decline. Shane Oliver, AMP’s chief economist, stated that prices had fallen 3.6% from their peak by the end of August. His forecast suggests a nationwide decline of around 10% from peak to trough. Applied to the property market valued at approximately $12.7 trillion, this percentage translates to nearly $1.3 trillion in residential wealth lost.
Borrowing rates have also increased throughout 2026. The Reserve Bank of Australia has increased the cash rate three times this year, raising it to 4.35%. These adjustments total 75 basis points. As a result, mortgage rates have risen, with lenders adjusting home-loan costs following the rate hikes. Scheduled mortgage payments now approach their peak for 2024 as a proportion of household disposable income. Additionally, the August assessment from the central bank indicated that national housing prices are 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 drops in home prices. Auction clearance rates have also fallen below their long-term averages. Markets such as Brisbane and Adelaide have shown signs of softening, while Perth and several regional areas continued to see gains. Growth in some stronger markets has slowed, illustrating that the housing downturn remains uneven across cities and regions, despite broader national indicators pointing toward declining prices.
These recent declines follow a much larger increase in Australian property values since the start of the pandemic. In the August review, national housing prices remained roughly 5% higher than they were a year earlier, and about 50% above pre-pandemic levels. Official figures on dwelling stock for the September quarter are expected on December 1. Until then, the latest available national property valuation remains at $12.689 trillion for June, reflecting the $34.1 billion quarterly decrease.