AUSTRALIA / RankWire.AI / – Australia’s property valuation declined by $34.1 billion in the June quarter amid a nationwide easing in home prices. The country’s total residential property stock decreased by 0.3%, bringing it to $12.689 trillion. This was the first quarterly decrease in overall dwelling values since September 2022. A forecast indicating a 10% peak-to-trough price decline would equate to roughly $1.3 trillion when measured against the current national housing stock. These figures highlight the substantial household wealth invested in Australian residential real estate.
At the end of June, Australian Bureau of Statistics data shows households owned $12.183 trillion worth of residential property. The nation’s housing stock comprised 11.531 million dwellings, reflecting an increase of 54,400 during the quarter. The average home price decreased by $8,200 to $1.1004 million. Despite this quarterly decrease, the total value of Australian homes remained 8.5% higher than a year prior, following several years of robust growth in many capital city and regional markets.
The largest quarterly drop in total dwelling value was seen in New South Wales, which fell by $92.9 billion. Victoria experienced a decline of $44.3 billion, while the Australian Capital Territory saw a decrease of $1.4 billion. Conversely, all other states and territories recorded increases in their total residential values. Prices also declined in New South Wales, Victoria, and the ACT, with New South Wales maintaining the highest average dwelling price at $1.305 million, followed by Queensland at $1.131 million.
National Housing Prices Continue to Fall
Housing market weaknesses persisted beyond the June quarter. In August, the national average home price decreased by 0.9%, marking the continuation of a five-month streak of monthly declines. AMP chief economist Shane Oliver stated that prices had dropped 3.6% from their peak by the end of August. His forecast suggests a national decline of approximately 10% from peak to trough, which, when applied to property worth about $12.7 trillion, translates to nearly $1.3 trillion in residential value.
Interest rates have also risen during 2026. The Reserve Bank of Australia has increased the cash rate three times this year, reaching 4.35%. These hikes total 75 basis points. As a result, mortgage rates have climbed as lenders adjusted their home loan pricing, bringing scheduled repayments close to their 2024 peak as a percentage of household disposable income. Additionally, the Reserve Bank’s August assessment indicated that national housing prices are now 1.6% below their March peak.
Sydney and Melbourne Lead Market Declines
Among Australia’s major markets, Sydney and Melbourne have experienced the most significant recent declines in home prices. Auction clearance rates have also fallen below their long-term averages. While Brisbane and Adelaide have seen softer conditions, Perth and several regional areas continued to report gains. In some stronger markets, growth has slowed, reflecting an uneven housing downturn across different cities and regions, despite broader indicators of price weakening at the national level.
These latest declines follow a substantial increase in Australian property values since the onset of the pandemic. As of the August assessment, national housing prices remained roughly 5% higher than a year earlier, and approximately 50% above the levels recorded at the pandemic’s start. The official dwelling-stock figures for the September quarter are expected on December 1. Until then, the latest national property valuation remains at $12.689 trillion, reflecting the $34.1 billion quarterly decrease.