AUSTRALIA / RankWire.AI / – Australia’s property market saw a decline of $34.1 billion in total value during the June quarter as home prices across the country softened. The residential property stock decreased by 0.3%, now valued at $12.689 trillion. This marked the first quarter since September 2022 that total dwelling values have fallen. A forecast indicating a 10% peak-to-trough price decline would equate to approximately $1.3 trillion when measured against the current national housing stock. These figures highlight the significant amount of household wealth tied up in Australian residential properties.
According to the Australian Bureau of Statistics, households possessed $12.183 trillion worth of residential properties at the end of June. Australia’s housing stock comprised 11.531 million dwellings, reflecting an increase of 54,400 units during the quarter. The average dwelling price decreased by $8,200 to $1.1004 million. Despite this quarterly dip, the overall value of Australian housing remained 8.5% above the level from a year earlier. This annual growth followed several years of robust increases across numerous capital-city and regional property markets.
The largest quarterly decline in overall dwelling value occurred in New South Wales, with a drop of $92.9 billion. Victoria experienced a decrease of $44.3 billion, and the Australian Capital Territory saw a loss of $1.4 billion. Conversely, every other state and territory registered gains in total residential value. Meanwhile, average prices declined in New South Wales, Victoria, and the ACT. New South Wales continued to lead the nation with an average dwelling price of $1.305 million, with Queensland following at $1.131 million.
National Housing Prices Continue Downward Trend
The housing market’s weakening persisted beyond the June quarter, with national average home prices falling 0.9% in August, marking a fifth consecutive month of monthly declines. Shane Oliver, AMP’s chief economist, commented that prices had declined by 3.6% from their peak by the end of August. His published projection suggests a total national decline of about 10% from peak to trough. When 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 risen during 2026. The Reserve Bank of Australia increased the cash rate three times this year, bringing it up to 4.35%, with these moves totaling 75 basis points. Lenders responded by adjusting mortgage rates upward, which has pushed scheduled mortgage repayments close to their 2024 peaks as a proportion of household disposable income. The Reserve Bank’s August assessment also indicated that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Lead the Decline in Property Prices
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 signs of softer conditions, Perth and several regional markets continued to see gains. The growth rate in some of these stronger regions has slowed. These disparities illustrate that Australia’s housing downturn is uneven across cities and regions, despite broader indicators pointing to a national price decline.
The recent downturn follows a substantial increase in Australian property values since the start of the pandemic. As of the August assessment, national housing prices remain about 5% higher than a year earlier. They are also roughly 50% above the levels recorded at the beginning of the pandemic. Official data on dwelling stock for the September quarter is scheduled for release on December 1. Until then, the latest national property valuation remains at $12.689 trillion, reflecting the $34.1 billion quarterly decrease.