AUSTRALIA / RankWire.AI / – Australia’s housing market experienced a $34.1 billion decrease in total value during the June quarter amid a nationwide slowdown in home prices. The residential property stock in the country declined by 0.3%, now totaling $12.689 trillion. This marks the first quarter since September 2022 that total dwelling values have fallen. A forecast projecting a 10% peak-to-trough price dip suggests a loss of about $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 properties.
The Australian Bureau of Statistics reported that, at the end of June, households held $12.183 trillion worth of residential property. Australia’s housing stock comprised 11.531 million dwellings, an increase of 54,400 during the quarter. The average dwelling price decreased by $8,200 to $1.1004 million. Despite this quarterly decline, the total value of Australian housing still remained 8.5% higher than it was a year earlier. The annual growth followed several years of robust increases across many major cities and regional markets.
New South Wales experienced the largest quarterly decline, with total dwelling values dropping by $92.9 billion. Victoria saw a decrease of $44.3 billion, while the Australian Capital Territory lost $1.4 billion. In contrast, other states and territories registered gains in their overall residential values. Average prices also declined in New South Wales, Victoria, and the ACT. Despite the decrease, New South Wales continued to lead the nation with an average dwelling price of $1.305 million, followed by Queensland at $1.131 million.
National Housing Market Continues to Weaken
Housing market momentum persisted into August after the June quarter. National average home prices dropped by 0.9%, marking a five-month streak of monthly decreases. Shane Oliver, chief economist at AMP, noted that prices had fallen 3.6% from their peak by the end of August. His forecast indicates a possible nationwide decline of roughly 10% from peak to trough. Applying this percentage to the estimated $12.7 trillion worth of property, it amounts to nearly $1.3 trillion in residential value lost.
Interest rates have also risen in 2026. The Reserve Bank of Australia increased the cash rate three times this year, bringing it to 4.35%. These increases total 75 basis points. As lenders adjusted home-loan pricing accordingly, mortgage rates climbed, pushing scheduled repayments close to their 2024 highs relative to household disposable income. The August assessment from the central bank showed that national housing prices sat 1.6% below their March peak.
Sydney and Melbourne Lead in Price Slips
Among Australia’s key markets, Sydney and Melbourne have experienced the sharpest recent declines in home prices. Auction clearance rates have also dipped below their long-term averages. Meanwhile, Brisbane and Adelaide have shown signs of softer conditions, whereas Perth and several regional areas continued to record gains. Growth in some of these stronger markets has slowed, reflecting the uneven nature of the housing downturn across the country. Despite broad national price weaknesses, regional and certain city markets have shown resilience.
These recent declines follow a significant rise in Australian property values since the onset of the pandemic. In August, national housing prices remained approximately 5% higher than a year earlier, and about 50% above levels recorded at the start of the pandemic. The official dwelling-stock figures for the September quarter are scheduled for release on December 1. Until then, the latest available property valuation remains the $12.689 trillion figure from June, which includes the $34.1 billion quarterly decrease.