AUSTRALIA / RankWire.AI / – Australia’s property sector saw a $34.1 billion decrease in overall value during the June quarter as nationwide home prices eased. The total residential property stock in the country decreased by 0.3%, now totaling $12.689 trillion. This marks the first quarterly reduction in aggregate dwelling worth since September 2022. A hypothetical 10% peak-to-trough price decline would amount to approximately $1.3 trillion based on current national housing stock figures. These numbers highlight the substantial household wealth embedded within Australian residential real estate.
The Australian Bureau of Statistics indicated that households owned residential properties worth $12.183 trillion as of the end of June. The country’s housing inventory reached 11.531 million dwellings, reflecting an increase of 54,400 during the quarter. The average home price decreased by $8,200, now standing at $1.1004 million. Despite the quarterly decline, the total value of Australian housing remains 8.5% higher than it was a year earlier. This annual growth followed several years of strong expansion across numerous capital-city and regional property markets.
The most substantial quarterly decrease in total dwelling value was recorded in New South Wales, with a drop of $92.9 billion. Victoria experienced a decline of $44.3 billion, and the Australian Capital Territory saw a loss of $1.4 billion. All other states and territories experienced increases in total residential value. Price levels also decreased in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales maintained its position as the most expensive market with an average dwelling price of $1.305 million, followed by Queensland at $1.131 million.
National Housing Market Prices Continue Downward Trend
The housing market’s softness persisted beyond the June quarter, with national average home prices falling 0.9% in August, marking the continuation of a five-month streak of monthly declines. According to AMP chief economist Shane Oliver, prices had decreased by 3.6% from their peak by the end of August. His forecast suggests a nationwide decline of approximately 10% from peak to trough. Applied to the roughly $12.7 trillion worth of property, this percentage translates to nearly $1.3 trillion in residential asset value reduction.
Interest rates have also risen during 2026. The Reserve Bank of Australia increased the cash rate three times this year, reaching 4.35%, a total increase of 75 basis points. As a result, mortgage rates have increased, with lenders adjusting their home-loan pricing accordingly. Scheduled mortgage repayments are now approaching their 2024 peak as a proportion of household disposable income. The August assessment from the central bank indicated that national housing prices are 1.6% below their March peak.
Sydney and Melbourne Experience Steepest Price Corrections
Among Australia’s major markets, Sydney and Melbourne have registered the largest recent declines in home prices. Auction clearance rates have also fallen below their long-term averages. Meanwhile, Brisbane and Adelaide have experienced softer conditions, whereas Perth and some regional areas continued to show gains. The growth rate in some of these more resilient markets has slowed. These variations reflect an uneven housing downturn across different cities and regions, despite broader indications of price weakness at the national level.
The recent declines follow a significant increase in Australian property values since the onset of the pandemic. In August, national housing prices remained about 5% higher than the previous year and approximately 50% above pre-pandemic levels. The official dwelling-stock figures for September will be released on December 1. Until then, the latest recorded national property valuation remains at $12.689 trillion for June, which includes the $34.1 billion quarterly decrease.