AUSTRALIA / RankWire.AI / – Australia’s property sector saw a $34.1 billion reduction in overall worth during the June quarter, reflecting a slowdown in home prices across the nation. The total value of the country’s residential assets decreased by 0.3%, bringing it to $12.689 trillion. This represents the first quarterly dip in total dwelling values since September 2022. A forecast estimating a 10% peak-to-trough decline suggests a potential loss of about $1.3 trillion when calculated against 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. During this period, Australia’s total dwellings increased by 54,400 to reach 11.531 million units. The average property price declined by $8,200, settling at $1.1004 million. Despite this quarterly decrease, the total housing value remained 8.5% higher than the same period last year. This annual growth follows several years of robust expansion across many urban and regional property markets.
The largest quarterly decrease in total dwelling value was recorded in New South Wales, which saw a drop of $92.9 billion. Victoria experienced a decline of $44.3 billion, while the Australian Capital Territory lost $1.4 billion. In contrast, all other states and territories saw increases in their total residential values. Average prices also decreased in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales maintained the highest average dwelling price at $1.305 million, with Queensland following at $1.131 million.
National Housing Prices Continue to Fall
The housing market’s weakness persisted after the June quarter. In August, national average home prices declined by 0.9%, marking a continuation of five consecutive months of monthly declines. 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 potential overall national decline of approximately 10% from peak to trough. Applying this percentage to the roughly $12.7 trillion worth of properties nationwide suggests a loss of nearly $1.3 trillion in residential value.
Interest rates have also risen throughout 2026. The Reserve Bank of Australia increased the cash rate three times this year, reaching 4.35%. These adjustments sum to a total of 75 basis points. As a result, mortgage rates have increased as lenders have adjusted home-loan costs following the rate hikes. Scheduled repayments are now close to their 2024 peak as a proportion of household disposable income. The central bank’s August assessment also revealed that national housing prices are about 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 significant recent decreases in home prices. Auction clearance rates have also dipped below their long-term averages. Markets like Brisbane and Adelaide have shown softer conditions, whereas Perth and several regional areas continue to see gains. The growth in some of these stronger markets has slowed down. These disparities illustrate that Australia’s housing downturn remains uneven across different cities and regions, despite broader indications of price weakening at the national level.
The recent declines follow a much larger increase in Australian property values since the pandemic’s onset. As of the August assessment, national housing prices were still approximately 5% higher than a year earlier. They also remain roughly 50% above the levels recorded at the start of the pandemic. Official data on dwelling stock for the September quarter will be released on December 1. Until then, the latest available national property valuation remains at $12.689 trillion, reflecting the $34.1 billion quarterly decrease.