AUSTRALIA / RankWire.AI / – Australia’s property market experienced a $34.1 billion decrease in value during the June quarter as nationwide home prices softened. The residential property stock in the country decreased by 0.3%, reaching $12.689 trillion. This reduction marked the first quarterly decline in total dwelling value since September 2022. A forecast estimating a 10% peak-to-trough price drop would equate to roughly $1.3 trillion relative to current national housing stock. These data underscore the significant household wealth held in Australian residential real estate.
At the end of June, the Australian Bureau of Statistics reported household ownership of residential properties valued at $12.183 trillion. During this period, Australia’s total dwellings numbered 11.531 million, reflecting an increase of 54,400 units over the quarter. The average home price decreased by $8,200, settling at $1.1004 million. Despite this quarterly decline, the overall value of Australian housing remained 8.5% higher than at the same time last year, following several years of robust growth in many capital city and regional markets.
The largest quarterly decrease in total dwelling value occurred in New South Wales, with a drop of $92.9 billion. Victoria saw a decline of $44.3 billion, while the Australian Capital Territory experienced a reduction of $1.4 billion. Conversely, all other states and territories recorded gains in total residential value. Average prices also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining the highest average at $1.305 million. Queensland’s average dwelling price was next at $1.131 million.
National Housing Market Continues Downward Trajectory
The housing sector’s weakness persisted after the June quarter. In August, national average home prices decreased by 0.9%, extending a five-month streak of monthly declines. AMP chief economist Shane Oliver stated that prices had fallen 3.6% from their peak by the end of August. His forecast indicates a potential national decline of approximately 10% from peak to trough. Applied to the roughly $12.7 trillion worth of property, 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 raised the cash rate three times this year, bringing it up to 4.35%. These adjustments total 75 basis points. As a result, mortgage rates have risen as lenders recalibrated home-loan pricing following the rate hikes. Scheduled mortgage repayments are now approaching their 2024 peak as a proportion of household disposable income. The August assessment from the central bank also revealed that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Lead in Declining Home Prices
Among Australia’s major markets, Sydney and Melbourne have experienced the most significant recent decreases in home prices. Auction clearance rates have also dipped below their long-term averages. While Brisbane and Adelaide have shown softer market conditions, Perth and several regional areas continue to record gains. However, growth in some of these stronger markets has begun to slow. These variations highlight that Australia’s housing downturn remains uneven across different cities and regions, despite broader signs of national price declines.
Following a substantial increase in property values since the pandemic’s onset, national housing prices in August remained about 5% higher than a year earlier. They also stood roughly 50% above levels from the start of the pandemic. The upcoming official dwelling-stock data for September will be released on December 1. Until then, the most recent national property valuation remains at $12.689 trillion for June, reflecting the $34.1 billion quarterly decrease.