AUSTRALIA / RankWire.AI / – Australia’s property market saw a $34.1 billion decrease in value during the June quarter as home prices declined across the country. The total worth of the nation’s residential real estate dropped 0.3%, bringing it to $12.689 trillion. This represents the first quarterly decrease in the overall dwelling value since September 2022. A separate forecast indicating a 10% peak-to-trough price drop would translate to roughly $1.3 trillion when measured against the current national housing stock. These figures highlight the significant portion of household wealth tied up in Australian residential properties.
According to the Australian Bureau of Statistics, households owned $12.183 trillion worth of residential property at the end of June. During this quarter, the country’s housing stock increased by 54,400 dwellings to a total of 11.531 million. The average home price decreased by $8,200, reaching $1.1004 million. Despite the quarterly dip, the total value of Australian homes remained 8.5% higher than the previous year’s level. This annual growth followed several years of robust expansion across many capital city and regional real estate markets.
New South Wales experienced the largest quarterly decline, with total dwelling value dropping by $92.9 billion. Victoria saw a reduction of $44.3 billion, while the Australian Capital Territory lost $1.4 billion. Conversely, all other states and territories recorded increases in their total residential property values. Prices also declined in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales continued to lead with an average dwelling price of $1.305 million, followed by Queensland at $1.131 million.
National Home Prices Continue Downward Trend
Housing market softness persisted after the June quarter. In August, national average home prices fell by 0.9%, marking a continuation of a five-month streak of monthly declines. Shane Oliver, the chief economist at AMP, stated that prices had decreased by 3.6% from their peak by the end of August. His forecast suggests a total national decline of approximately 10% from the peak to the trough. Applied to the roughly $12.7 trillion worth of property, this percentage equates to 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 total 75 basis points. As lenders responded to the rate hikes, mortgage rates climbed accordingly. Scheduled repayments now approach their 2024 peak as a proportion of household disposable income. The August assessment by the central bank also indicated that national housing prices sit 1.6% below their March peak.
Sydney and Melbourne Lead the Downward Move in Home Prices
Among Australia’s major markets, Sydney and Melbourne have experienced the most notable recent declines in home prices. Auction clearance rates have also fallen below their long-term averages. Meanwhile, Brisbane and Adelaide have seen softer conditions, whereas Perth and several regional areas continued to report gains. The growth in some of those stronger markets has slowed. These differences illustrate that Australia’s housing correction remains uneven across cities and regions, despite broader national indicators pointing to declining prices.
The recent drops follow a significantly larger rise in property values since the onset of the pandemic. As of the August assessment, national housing prices are still about 5% higher than a year earlier. They are also approximately 50% above the levels recorded at the start of the pandemic. Official dwelling-stock figures for the September quarter will be released on December 1. Until then, the latest national property valuation remains the $12.689 trillion recorded for June, including the $34.1 billion quarterly decrease.