AUSTRALIA / RankWire.AI / – Australia’s housing market saw a $34.1 billion reduction in total value during the June quarter, reflecting a nationwide slowdown in home prices. The country’s residential property portfolio decreased 0.3% to reach $12.689 trillion. This represents the first decline in overall dwelling value since September 2022. A separate forecast indicating a 10% peak-to-trough price drop would equate to approximately $1.3 trillion when measured against the current national housing stock. These figures highlight the substantial amount of household wealth invested in Australian residential real estate.
At the end of June, the Australian Bureau of Statistics reported household ownership of $12.183 trillion worth of residential property. The nation’s housing stock reached 11.531 million dwellings, an increase of 54,400 during the quarter. The average price per dwelling declined by $8,200 to $1.1004 million. Despite this quarterly decrease, the total value of Australian homes still remained 8.5% higher than it was a year earlier. This annual growth follows several years of strong expansion across many capital cities and regional markets.
In terms of regional impact, New South Wales experienced the largest quarterly decrease, with total dwelling values dropping by $92.9 billion. Victoria saw a decline of $44.3 billion, and the Australian Capital Territory recorded a $1.4 billion loss. Meanwhile, all other states and territories experienced increases in their total residential values. Average property prices also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining the highest average at $1.305 million. Queensland followed with an average of $1.131 million.
National home prices continue their downward trend
After the June quarter, weakness persisted across the housing sector. In August, national average home prices decreased by 0.9%, marking a fifth consecutive month of monthly declines. Shane Oliver, AMP’s chief economist, stated that prices had fallen 3.6% from their peak by the end of August. His published forecast suggests a nationwide decline of approximately 10% from peak to trough. Applied to the estimated $12.7 trillion worth of property, this percentage indicates a potential loss of nearly $1.3 trillion in residential value.
Throughout 2026, borrowing costs have also increased. The Reserve Bank of Australia has raised the cash rate three times this year, bringing it up to 4.35%. These adjustments total 75 basis points. As a consequence, lenders have increased mortgage rates, which has caused scheduled mortgage repayments to approach their 2024 peak as a proportion of household disposable income. The central bank’s August assessment further indicated that national housing prices are currently 1.6% below their March peak.
Sydney and Melbourne experience steepest declines in property values
Among Australia’s major markets, Sydney and Melbourne have recorded the most significant recent drops in home prices. Additionally, auction clearance rates in these cities have fallen below their long-term averages. While Brisbane and Adelaide have shown signs of cooling, Perth and several regional areas continue to post modest gains. Growth in some of these more resilient markets has also slowed down. These variations illustrate that Australia’s housing downturn remains uneven across cities and regions, despite broader national indicators pointing to a general weakening in prices.
The recent downturn follows a much larger increase in Australian property values since the onset of the pandemic. In August, national housing prices remained roughly 5% higher than the same period a year earlier, and about 50% above pre-pandemic levels. The official dwelling-stock figures for September are scheduled for release on December 1. Until then, the latest national property valuation continues to be the $12.689 trillion recorded for June, reflecting the $34.1 billion quarterly decrease.