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%.<\/p>\n
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\u2019s resurgent inflation problem.<\/p>\n
<\/p>\n
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<\/p>\n
The slower growth earlier this year followed a rapid rise in values last year, ABS head of finance statistics Dr Mish Tan said.<\/p>\n
\u201cGrowth in dwelling values moderated this quarter, following a strong rise in late 2025,\u201d she said.<\/p>\n
\u201cDespite this, the value of Australia\u2019s dwelling stock is 11.9 per cent higher than a year ago, with increases in residential property prices continuing to drive growth.\u201d<\/p>\n
Total value of dwelling stock in Australia<\/p>\n
Source: Australian Bureau of Statistics, Total Value of Dwellings March Quarter 2026<\/p>\n
The strongest growth was concentrated in Western Australia, where the mean dwelling price jumped by 25.4% in the March quarter, ABS figures show.<\/p>\n
It was followed by the Northern Territory (up 18.9%), Queensland (up 17.3%) and South Australia (up 15.1%).<\/p>\n
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Western Australia outpaced all the other states for growth in home values, according to the ABS. Picture: Getty<\/p>\n
\u201cAnnual growth for these states is well above New South Wales and Victoria, where increases have been comparatively modest,\u201d Dr Tan said.<\/p>\n
Victoria was the only state where the mean dwelling price fell in the March quarter, declining by 0.3%.<\/p>\n
Annual growth in mean price of dwellings, by state<\/p>\n
Source: Australian Bureau of Statistics, Total Value of Dwellings March Quarter 2026<\/p>\n
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.<\/p>\n
About 39,000 houses changed hands in the March quarter, while about 31,500 units were traded\u00a0<\/p>\n
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.<\/p>\n
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.<\/p>\n
Property tax changes<\/a> announced in the federal budget in May have caused further uncertainty among investors in recent months.<\/p>\n REA Group senior economist Angus Moore<\/a> said interest rates were expected to go higher this year, which was likely to contribute to further softness in the market in coming months.<\/p>\n \u201cWith 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,\u201d he said.\u00a0<\/p>\n