AUSTRALIA / RankWire.AI / – Australia’s property valuation saw a decrease of $34.1 billion during the June quarter as home prices softened across the nation. The residential real estate market’s total worth declined by 0.3%, bringing it to $12.689 trillion. This drop marks the first quarterly decrease in overall dwelling value since September 2022. A hypothetical 10% peak-to-trough price fall would amount to roughly $1.3 trillion based on the current national housing stock. These figures highlight the substantial amount of household wealth invested in Australian residential properties.
According to the Australian Bureau of Statistics, households held $12.183 trillion worth of residential property at the end of June. Australia’s housing stock consisted of 11.531 million dwellings, reflecting an increase of 54,400 units during the quarter. The average home price decreased by $8,200, now standing at $1.1004 million. Despite this quarterly decline, the overall value of Australian housing remained 8.5% higher than it was a year ago, a growth that followed several years of robust expansion across many capital city and regional markets.
The greatest quarterly decrease in total dwelling value was seen in New South Wales, with a drop of $92.9 billion. Victoria’s market experienced a decrease of $44.3 billion, while the Australian Capital Territory saw a reduction of $1.4 billion. All other states and territories recorded increases in their total residential property values. Meanwhile, average home prices also declined in New South Wales, Victoria, and the ACT. Still, New South Wales maintained its lead with an average dwelling price of $1.305 million, followed by Queensland at $1.131 million.
National Home Prices Continue Downward Trend
Weakness in the housing market persisted beyond the June quarter. In August, national average home prices fell by 0.9%, marking a continuation of five consecutive months 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 suggests a total national decline of around 10% from peak to trough. Applied to the roughly $12.7 trillion worth of property, this percentage equates to nearly $1.3 trillion in residential value.
Interest rates have also increased during 2026. The Reserve Bank of Australia has raised the cash rate three times this year, reaching 4.35%. These increases sum to 75 basis points. As a result, mortgage rates have risen as lenders adjusted home-loan costs following the rate hikes. Scheduled mortgage repayments are now approaching their peak levels for 2024 relative to household disposable income. The August assessment by the central bank also indicated that national housing prices sit 1.6% below their March peak.
Sydney and Melbourne Lead the Decline in Major Markets
Among Australia’s key markets, Sydney and Melbourne have experienced the most significant recent decreases in home prices. Auction clearance rates have also fallen below their long-term averages. Meanwhile, markets in Brisbane and Adelaide have shown signs of softer conditions, whereas Perth and several regional areas have continued to record gains. Growth in some of these stronger markets has also slowed. These variations illustrate that Australia’s housing downturn remains uneven across different cities and regions, despite broader indications of declining prices on a national level.
The recent downturn follows a substantial increase in Australian property values since the onset of the pandemic. As of the August assessment, national housing prices are approximately 5% higher than they were a year earlier. They also remain around 50% above the levels recorded at the pandemic’s start. The official dwelling stock figures for the September quarter are scheduled for release on December 1. Until then, the latest national property valuation continues to be the $12.689 trillion figure recorded for June, which includes the $34.1 billion quarterly decline.