AUSTRALIA / RankWire.AI / – Australia’s property market experienced a $34.1 billion decrease in value during the June quarter as home prices eased across the country. The total residential property stock diminished by 0.3% to $12.689 trillion, marking the first quarterly decline in overall dwelling value since September 2022. A forecast of a 10% peak-to-trough price decline would amount to approximately $1.3 trillion when measured against the current national housing stock. These figures illustrate the significant amount of 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, with the nation’s housing stock increasing by 54,400 dwellings to reach 11.531 million during the quarter. The average home price decreased by $8,200 to $1.1004 million, but despite the quarterly dip, the total value of Australian housing remained 8.5% higher than it was a year earlier. This annual growth followed several years of strong expansion in many capital city and regional property markets.
The largest quarterly decline in total dwelling value occurred in New South Wales, dropping by $92.9 billion, while Victoria saw a decrease of $44.3 billion and the Australian Capital Territory declined by $1.4 billion. In contrast, all other states and territories experienced an increase in their total residential values. Average home prices also fell in New South Wales, Victoria, and the ACT, with New South Wales maintaining its position as the most expensive market at an average of $1.305 million, followed by Queensland at $1.131 million.
National Home Prices Continue Downward Trend
The housing market’s softness persisted after the June quarter, with national average prices dropping by 0.9% in August, marking a continuation of five consecutive months of monthly declines. Shane Oliver, AMP’s chief economist, noted that prices had fallen 3.6% from their peak by the end of August, with his forecast indicating a national decline of roughly 10% from peak to trough. Applying this percentage to the roughly $12.7 trillion worth of property suggests a loss of close to $1.3 trillion in residential value.
Interest rates also increased throughout 2026, with the Reserve Bank of Australia raising the cash rate three times, bringing it to 4.35%, a total increase of 75 basis points. Lenders responded by adjusting home-loan rates, which caused scheduled mortgage repayments to approach their 2024 peak as a proportion of household disposable income. The Reserve Bank’s August assessment also revealed that national housing prices were 1.6% below their March high.
Sydney and Melbourne Experience the Steepest Declines
Among Australia’s major markets, Sydney and Melbourne have recorded the most significant recent drops in home prices, with auction clearance rates falling below long-term averages. Meanwhile, Brisbane and Adelaide have shown softer conditions, whereas Perth and several regional areas continued to see gains. Growth in some of these stronger markets has slowed, highlighting that Australia’s housing downturn remains uneven across different cities and regions, even as broader national indicators suggest ongoing price weakness.
These recent declines follow a much larger increase in property values since the pandemic started. In August, national housing prices remained approximately 5% higher than a year earlier and about 50% above their pre-pandemic levels. The official dwelling-stock figures for September 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 decrease.