The total value of housing has soared to an eyewatering record high, but the pace of growth has slowed as rate hikes hit homebuyers.
New figures from the Australian Bureau of Statistics shows that the total value of every home in Australia rose by $316 billion in the past quarter to hit $12.77 trillion.
To put that into perspective, that’s about seven times the value of Australian households’ bank deposits, four times the value of the Australian stock market, three times the total value of superannuation and about the same value as the housing markets of Canada and France.
The average (mean) home price also surpassed $1.1 million for the first time, though this is different to the median value of $908,000.
While the 2.5% quarterly rise took values to a new record, the pace of growth decelerated since the previous quarter, when it increased by $385 billion, or about 4%.
The data covers the three months to March 2026, capturing the first two of three interest rate hikes handed down by the Reserve Bank this year to quell Australia’s resurgent inflation problem.
Although the total value of Australian housing has hit a record high, growth has slowed and the number of transactions declined in the March quarter. Picture: Getty
The slower growth earlier this year followed a rapid rise in values last year, ABS head of finance statistics Dr Mish Tan said.
“Growth in dwelling values moderated this quarter, following a strong rise in late 2025,” she said.
“Despite this, the value of Australia’s dwelling stock is 11.9 per cent higher than a year ago, with increases in residential property prices continuing to drive growth.”
Total value of dwelling stock in Australia
Source: Australian Bureau of Statistics, Total Value of Dwellings March Quarter 2026
The strongest growth was concentrated in Western Australia, where the mean dwelling price jumped by 25.4% in the March quarter, ABS figures show.
It was followed by the Northern Territory (up 18.9%), Queensland (up 17.3%) and South Australia (up 15.1%).
Western Australia outpaced all the other states for growth in home values, according to the ABS. Picture: Getty
“Annual growth for these states is well above New South Wales and Victoria, where increases have been comparatively modest,” Dr Tan said.
Victoria was the only state where the mean dwelling price fell in the March quarter, declining by 0.3%.
Annual growth in mean price of dwellings, by state
Source: Australian Bureau of Statistics, Total Value of Dwellings March Quarter 2026
The ABS data also revealed a huge dropoff in housing transactions, with transfers of houses across the combined capitals declining to levels not seen since June 2020, while unit transactions fell to the lowest level since March 2023.
About 39,000 houses changed hands in the March quarter, while about 31,500 units were traded
March is typically the quietest quarter for transactions, but the significant slowdown in activity points to a cooling in conditions following a property boom in much of the country last year.
Interest rate rises have taken some of the heat out of the market this year following an uptick in inflation exacerbated by the fuel crisis triggered by the war in the Middle East.
Property tax changes announced in the federal budget in May have caused further uncertainty among investors in recent months.
REA Group senior economist Angus Moore said interest rates were expected to go higher this year, which was likely to contribute to further softness in the market in coming months.
“With at least one further rate hike expected in 2026, and some pullback in investor demand post-Budget, prices are likely to continue to be soft,” he said.
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The latest PropTrack Home Price Index shows values were mostly flat last month, with falls in Sydney, Melbourne, Canberra and Perth offsetting modest rises in other cities.
However, signs weren’t pointing to a major slowdown just yet, Mr Moore said.
“Price declines are unlikely to be large as the labour market remains resilient, households have strong equity buffers, in turn, limiting forced sales, and high construction costs and supply constraints are limiting the volume of new homes.”
The ABS data further reinforced the challenges of bringing new supply to the market, with the total number of homes increasing at roughly the same pace as last quarter, rising by 54,200 to almost 11.5 million.
The total value of Queensland's housing market is on track to surpass that of Victoria as the second-most valuable state for housing after New South Wales. Picture: Getty
New South Wales had the largest housing market of the states by far, with a total value of $4.7 trillion.
It was followed by Victoria with a value of $2.9 trillion and Queensland with a value of $2.6 trillion.
Assuming the current trajectory, Queensland’s housing market is on track to surpass Victoria’s in value later this year.
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