AUSTRALIA / RankWire.AI / – Australia’s property market experienced a $34.1 billion decrease in value during the June quarter as home prices weakened across the country. The total residential property stock declined by 0.3%, now valued at $12.689 trillion. This represents the first quarterly decrease in overall dwelling value since September 2022. A separate forecast suggests a 10% peak-to-trough price drop, which would equate to approximately $1.3 trillion based on the current national housing stock. These figures highlight the significant amount of household wealth tied up in Australian residential real estate.
According to the Australian Bureau of Statistics, households owned $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 price per dwelling decreased by $8,200 to $1.1004 million. Despite this quarterly decline, the total value of Australian housing remained 8.5% higher than it was a year earlier. This annual growth followed several years of strong upward movement across many major city and regional property markets.
The largest quarterly drop in total dwelling value was recorded in New South Wales, falling by $92.9 billion. Victoria experienced a decrease of $44.3 billion, while the Australian Capital Territory saw a decline of $1.4 billion. All other states and territories reported increases in their total residential values. Prices in New South Wales, Victoria, and the ACT also declined, with New South Wales maintaining the highest average dwelling price at $1.305 million. Queensland’s average was the second highest at $1.131 million.
National Housing Prices Continue Downward Trend
The weakness in the housing market persisted after the June quarter. In August, national average home prices fell by 0.9%, marking the continuation of a five-month streak of monthly decreases. Shane Oliver, chief economist at AMP, noted that prices had dropped 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 loss.
During 2026, borrowing costs have also risen. The Reserve Bank of Australia increased the cash rate three times this year, bringing it to 4.35%. These increases total 75 basis points. Consequently, mortgage rates have climbed as lenders adjusted home-loan pricing in response. Scheduled mortgage repayments now approach their 2024 peak as a proportion of household disposable income. Additionally, the Reserve Bank’s August assessment revealed that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Experience the Most Notable Price Deterioration
Among Australia’s key markets, Sydney and Melbourne have shown the steepest recent declines in home prices. Auction clearance rates have also fallen below their long-term averages. Meanwhile, Brisbane and Adelaide are experiencing softer market conditions, whereas Perth and several regional areas continue to report gains. The growth in some of the more resilient markets has also begun to slow. These contrasting trends demonstrate that Australia’s housing downturn remains uneven across different cities and regions, despite broader indications of weakening prices on a national level.
The recent declines follow a substantial rise in property values since the onset of the pandemic. In the August assessment, national housing prices were approximately 5% higher than a year earlier. They are also roughly 50% above the levels recorded at the start of the pandemic. 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 decline.