AUSTRALIA / RankWire.AI / – Australia’s real estate market saw a decrease of $34.1 billion in value during the June quarter amid a nationwide slowdown in home prices. The residential property portfolio across the country contracted by 0.3%, now valued at $12.689 trillion. This marks the first decline in total dwelling worth since September 2022. A forecast suggesting a 10% peak-to-trough price decrease would translate to approximately $1.3 trillion when applied to the current housing stock. These figures highlight the significant household wealth tied up in Australian residential properties.
According to data from the Australian Bureau of Statistics, household-held residential property was valued at $12.183 trillion at the end of June. The nation’s housing stock comprised 11.531 million dwellings, reflecting an increase of 54,400 units during the quarter. The average home price declined by $8,200, now standing at $1.1004 million. Despite this quarterly dip, the total value of Australian housing remained 8.5% higher than it was a year prior. This yearly growth followed several years of strong appreciation across many capital cities and regional markets.
The largest quarterly decrease in overall dwelling value was recorded in New South Wales, which fell by $92.9 billion. Victoria experienced a drop of $44.3 billion, and the Australian Capital Territory saw a decrease of $1.4 billion. Meanwhile, all other states and territories reported increases in their residential property values. Price averages also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining the highest average at $1.305 million. Queensland’s average home price was the second highest at $1.131 million.
Nationwide Home Prices Continue Their Downward Trend
The housing market’s softness persisted after the June quarter, with national average home prices dropping by 0.9% in August—marking a fifth consecutive month of monthly declines. Shane Oliver, chief economist at AMP, indicated that prices had fallen 3.6% from their peak by August’s end. His published forecast estimates a national decline of roughly 10% from peak to trough. When applied to the approximately $12.7 trillion worth of property, this percentage equals close to $1.3 trillion in residential value.
Interest rates have also risen in 2026. The Reserve Bank of Australia has increased the cash rate three times this year, bringing it to 4.35%. These adjustments amount to a total increase of 75 basis points. As lenders recalibrated home loan prices following these hikes, mortgage rates have climbed accordingly. Scheduled mortgage repayments now approach their 2024 peak as a proportion of household disposable income. The RBA’s August assessment also revealed that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Lead the Decline in Property Values
Among Australia’s major cities, Sydney and Melbourne have experienced the most pronounced recent decreases in home prices. Auction clearance rates in these markets have also fallen below long-term averages. Meanwhile, Brisbane and Adelaide have shown signs of softer conditions, whereas Perth and several regional areas continued to see gains. The pace of growth in some of these stronger markets has also slowed. These disparities illustrate that Australia’s housing downturn remains uneven across regions and cities, even as national indicators point to broader price weakening.
The recent declines follow a substantial increase in property values since the onset of the pandemic. As of August, national housing prices were still about 5% higher than the previous year. They were also roughly 50% above the levels recorded at the start of the pandemic. The upcoming official figures for dwelling stock in 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 decrease.