- Australia's combined dwelling stock value hits a new record, reaching $10.91 trillion in the June 2024 quarter.
- The total number of dwellings is now up to 11.21 million, bringing the average home value to $973,300.
- Victoria experienced a 0.72% decline in mean home prices, dropping to $900,300 from $906,900 in the previous quarter.
- WA posted the strongest price gains, up 6.20%; followed by SA (up 4.22%) and Queensland (up 3.57%).
Preliminary data from the ABS showed that the country's total dwelling stock rose by $225.9 billion in the second quarter.
This puts the total value of residential dwellings in Australia only about $88 billion shy of the $11 trillion mark.
The pace of quarterly growth accelerated to 2.11%, faster than the 1.15% in the previous period.
This marks the fifth consecutive quarter and the seventh time overall that the total value of dwellings across the country has breached the $10 trillion threshold.
By comparison, CoreLogic estimates the combined value of residential real estate reached $10.8 trillion in June.
Around 52,900 homes were recorded as completed by the ABS, bringing the total number of residential dwellings to 11.21 million.
The average home value has reached $973,300 over the three months ending June, up by $15,600 from the revised $957,700 in the quarter prior.
Of the total value of housing stock, $10.48 trillion was owned by households.
Victoria property values further decline
Victoria's property market continues its downward spiral after the average dwelling value in the state fell by another 0.72%.
A repeat of the March quarter outcome, June quarter ABS data showed the total value of residential dwellings rose in all states and territories except VIC.
Despite maintaining its position as the third most expensive property market, the mean home value in Victoria plunged to $900,300, down $6,600 from the revised $906,900 in the previous quarter.
Compared with December quarter print, the average price of homes in VIC has fallen by a much steeper $20,400.
Above-average supply and negative investor sentiment have been identified as the key factors behind Victoria property market's continued decline.
While property price growth has been cooling across the states, significant drops have been particularly evident in Victoria, as corroborated by CoreLogic data released last week.
"While values are still rising at the national level, albeit at a slowing pace, beneath the headline figure, we're starting to see some weakness, particularly in Victoria," CoreLogic economist Kaytlin Ezzy said.
Based on the latest available data, the statistician is likely to record further declines in Victoria's home values.
CoreLogic's latest Home Value Index highlighted the creeping weakness in demand in the state, with the median home value in Victoria's capital Melbourne falling to the sixth spot in August, behind Brisbane, Adelaide, and Perth.
The property data firm also found that Melbourne and regional Victorian suburbs made up the majority of falls in home values over the three months to August, with 79.1% of suburbs and 73.8% of regions in the state recording falls.
"In Melbourne, declines were most concentrated in more affluent regions, with 100% of suburbs in the Mornington Peninsula recording decreasing values," Ms Ezzy noted.
"A similar pattern played out in regional Victoria, with Ballarat (100%), Geelong (97.8%), and Bendigo (89.3%) recording the highest concentration of falls."
According to research head Eliza Owen, "Supply is a big factor for Victoria, where the state saw more dwelling completions over the past decade than any other state or territory."
More homes are expected to hit the market soon, as Victoria recorded the highest number of dwellings (up 20.1%) greenlit for construction in July.
ABS approvals data showed of the 14,797 homes up for construction, 4,691 of which are located in the state.
Mean dwelling price in other states
The ABS noted that New South Wales remains the most expensive property market in the country, posting a mean price of $1.22 million in the June quarter, up from $1.21 million.
The Australian Capital Territory, where the average home price is $953,900, holds the second spot.
Western Australia, South Australia, and Queensland property markets continue to outperform other territories and states.
ABS data showed WA posted the strongest price gain in the June quarter, rising 6.20% to $816,000.
WA was followed by SA, where the mean price of dwellings rose 4.22% quarter-on-quarter, reaching $800,400.
QLD's average home price jumped 3.57% to $885,400.
Photo by wirestock on Freepik
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