AUSTRALIA / RankWire.AI / – Australia’s real estate sector saw a $34.1 billion reduction in its total worth during the June quarter amid a nationwide easing in home prices. The residential property stock in the country declined 0.3%, bringing its total to $12.689 trillion. This marked the first quarter since September 2022 that total dwelling values decreased. A separate forecast suggests a 10% peak-to-trough price decline, which would equate to approximately $1.3 trillion when measured against the current housing stock. These figures highlight the substantial household wealth embedded in Australian residential properties.
According to Australian Bureau of Statistics, households held $12.183 trillion worth of residential property at the end of June. The nation’s housing stock comprised 11.531 million dwellings, an increase of 54,400 units during the quarter. The average price per dwelling decreased by $8,200, reaching $1.1004 million. Despite this quarterly decrease, the overall value of Australia’s housing stock remained 8.5% higher than it was a year earlier. This annual growth followed several years of robust expansion across many capital city and regional markets.
New South Wales experienced the most significant quarterly decline in overall dwelling value, dropping by $92.9 billion. Victoria saw a reduction of $44.3 billion, while the Australian Capital Territory lost $1.4 billion. All other states and territories recorded increases in total residential property values. Price averages also decreased in New South Wales, Victoria, and the ACT. Nonetheless, New South Wales continued to lead the country with an average dwelling price of $1.305 million, with Queensland following at $1.131 million.
Nationwide home prices continue their downward trend
The softness in the housing market persisted after the June quarter. In August, national average home prices declined by 0.9%, marking the fifth consecutive month of monthly decreases. Shane Oliver, AMP’s chief economist, noted that prices had fallen 3.6% from their peak by the end of August. His forecast indicates a possible nationwide drop of around 10% from peak to trough. Applying this percentage to the approximately $12.7 trillion worth of property suggests a loss nearing $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 increases total 75 basis points. As a result, mortgage rates have gone up as lenders adjusted their home-loan pricing, causing scheduled mortgage repayments to approach their 2024 peak as a proportion of household disposable income. The August assessment from the central bank also revealed that national housing prices are 1.6% below their March peak.
Sydney and Melbourne face the steepest recent declines
Among Australia’s major markets, Sydney and Melbourne have experienced the most substantial recent decreases in home prices. Auction clearance rates have also fallen below their long-term average levels. Meanwhile, Brisbane and Adelaide have shown softer conditions, whereas Perth and several regional areas continued to post gains. Growth in some of these stronger markets has also slowed down. These variations illustrate that Australia’s housing downturn remains uneven across different cities and regions, even as broader national data points to widespread price weakness.
The current declines follow a considerably larger increase in Australian property values since the onset of the pandemic. In August, national housing prices were still roughly 5% higher than a year earlier and about 50% above their pre-pandemic levels. The official dwelling-stock figures for September are scheduled for release on December 1. Until then, the latest official valuation remains at the $12.689 trillion recorded for June, including the $34.1 billion quarterly fall.