AUSTRALIA / RankWire.AI / – Australia’s housing market experienced a $34.1 billion decrease in total value during the June quarter, reflecting a nationwide slowdown in home prices. The country’s residential property stock declined by 0.3%, bringing its total to $12.689 trillion. This marked the first quarter since September 2022 that total dwelling values have fallen. A separate forecast indicating a 10% peak-to-trough price decline would translate to about $1.3 trillion when compared to the current national housing stock. These figures highlight the significant household wealth tied up in Australian residential real estate.
According to the Australian Bureau of Statistics, households held $12.183 trillion worth of residential property at the end of June. The country had 11.531 million dwellings, an increase of 54,400 during the quarter. The average home price decreased by $8,200 to $1.1004 million. Despite the quarterly decline, the total value of Australian housing remained 8.5% higher than its level a year earlier, a gain driven by several years of robust growth across many capital-city and regional property markets.
The largest decrease in total dwelling value was recorded in New South Wales, which fell by $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 reported increases in total residential value. Average home prices also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining its position as the most expensive market at $1.305 million. Queensland followed with an average of $1.131 million.
National Home Prices Continue Downward Trend
The housing market’s softness persisted beyond the June quarter. In August, national average home prices dropped 0.9%, marking the continuation of a five-month streak of monthly decreases. AMP chief economist Shane Oliver noted that prices had fallen 3.6% from their peak by the end of August. His forecast indicates a roughly 10% national decline from peak to trough, which, applied to the property market valued at approximately $12.7 trillion, amounts to nearly $1.3 trillion in residential value loss.
Interest rates have also climbed during 2026. The Reserve Bank of Australia raised the cash rate three times this year, reaching 4.35%. These adjustments total 75 basis points. As a result, mortgage rates increased as lenders revised home-loan costs following the rate hikes. Scheduled mortgage repayments now approach their 2024 peak as a proportion of household disposable income. The RBA’s August assessment also indicated that national housing prices were 1.6% below their March peak.
Sydney and Melbourne Experience the Most Significant Price Drops
Among Australia’s major markets, Sydney and Melbourne have recorded the steepest recent declines in home prices. Auction clearance rates have also fallen below their long-term averages. In contrast, Brisbane and Adelaide have shown more subdued conditions, while Perth and several regional areas continued to see gains. The growth in some of these stronger markets has also slowed down. These disparities reveal that Australia’s housing downturn remains uneven across different cities and regions, despite broader national indicators pointing to overall price declines.
These recent decreases follow a substantial rise in Australian property values since the onset of the pandemic. As of the August assessment, national housing prices remain roughly 5% higher than a year earlier and are approximately 50% above levels recorded at the pandemic’s start. 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, reflecting the $34.1 billion quarterly fall.