Australia's residential property market added $315.9 billion in the March quarter of 2026, pushing the total value of the nation's dwelling stock to $12.8 trillion, according to new data from the Australian Bureau of Statistics. The result represents a moderation from the strong December quarter but confirms that annual growth remains well entrenched.
ABS head of finance statistics Mish Tan described the quarterly result as a step down from recent momentum.
"Growth in dwelling values moderated this quarter, following a strong rise in late 2025," Tan said in a media release. "Despite this, the value of Australia's dwelling stock is 11.9% higher than a year ago, with increases in residential property prices continuing to drive growth."
The state-level breakdown reveals a property market increasingly divided along geographic lines. Western Australia recorded the strongest quarterly gain by some margin — up 7.2%, or $73,700 in mean dwelling price terms — followed by Queensland at 4.6%, or $49,800.
On an annual basis, the divergence is even more pronounced, with WA posting 25.4% growth over the year to March, the Northern Territory at 18.9%, and Queensland at 17.3%.
Victoria was the only state or territory to record a fall in mean dwelling price during the quarter, declining 0.3%, or $2,400. Annual growth in Victoria came in at 4.1% — modest compared with the resource-driven and sunbelt states but still positive.
"Price growth has been strongest in Western Australia, the Northern Territory and Queensland over the past year. Annual growth for these states is well above New South Wales and Victoria, where increases have been comparatively modest," Tan said.
More recent data suggests that gap has widened further — Cotality's national Home Value Index was flat in May, with Sydney recording a 0.9% monthly fall and now sitting 2.1% below its November cyclical high, while Melbourne fell 0.8% to sit 2.9% below its November peak. Annual growth eased to 7.8% nationally.
The consequences for recent buyers are becoming tangible — CBA forecasts Sydney to fall 6% and Melbourne 7% in 2026. Canstar modelling shows a Melbourne first-home buyer with a 5% deposit could owe more than their home is worth by December.
The picture is more encouraging elsewhere. New South Wales recorded annual growth of 6.1% to March — a notable acceleration from 3.6% a year earlier — while South Australia came in at 15.1%, maintaining its position as one of the stronger-performing markets outside the resource states. In Victoria, easing prices are already drawing attention from buyers priced out of stronger markets.
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