Household demand for credit reached a record $72.6 billion in the June quarter. Borrowers continued to add to their housing loan balances even as the value of land and dwellings slipped, according to new Australian Bureau of Statistics (ABS) figures.
The ABS said growth in housing loan balances and borrowing by private unincorporated businesses, such as sole traders, drove the result.
ABS head of finance statistics Mish Tan said that although borrowing activity fell in the June quarter, "the value of new borrowing remains at elevated levels".
The record comes as all four major banks now expect the Reserve Bank of Australia to raise rates in September, which would follow three increases this year that have taken the cash rate to 4.35%.
Total household wealth rose 1.0%, or $201.1 billion, over the quarter, according to the ABS's Australian National Accounts: Finance and Wealth, June 2026. Rising household borrowing, up 2.2% or $73.4 billion, trimmed 0.4 percentage points from that growth.
A 5.2% jump in superannuation assets did the heavy lifting, outweighing a 0.2% slip in land and dwelling values.
Tan attributed the superannuation gains to global and domestic share markets recovering from the low levels they reached at the start of the Middle East conflict in March 2026.
The value of land and dwellings declined for the first time since the September quarter 2022. Weaker prices were behind the decline, with the mean dwelling price falling 0.7% as prices eased in New South Wales, Victoria, and the Australian Capital Territory.
Tan said that, despite the quarterly decline, their value "remains 8% higher compared to the same period last year".
Total demand for credit across the economy was $132.7 billion, down $24.7 billion on the March quarter.
Private non-financial businesses led with $73.5 billion, just ahead of households. Business credit demand came mainly from $43.8 billion in loans and $23.6 billion in equity raising.
General government credit demand fell to a record low of -$18.3 billion as the Commonwealth repaid maturing debt securities. That followed $41.2 billion in the March quarter.
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