Australian Home Values Pass $12tn for First Time

The value of Australia’s total residential stock has for the first time passed $12 trillion.

The total value according to the ABS data for the December 2025 quarter shows a historic record value of about $12.3 trillion.

The figures reveal home values increased by around $384.8 billion, or 3.2 per cent, compared with the previous quarter, driven by rising property prices in all states and territories.

The value of homes has grown without interruption for 13 consecutive quarters since September 2022.

The national mean home price rose to about $1.07 million, with strong quarterly growth recorded in Western Australia, Queensland and South Australia.

Western Australia stood out with the fastest annual growth, lifting average home values 16.8 per cent year‑on‑year to just over $1 million, joining New South Wales and Queensland as markets with average home values above that threshold.

Analysts say the milestone underscores ongoing pressure on housing affordability and the persistent imbalance between supply and demand in Australia’s property markets.

▲ Source: ABS

While total values continue to climb, rising interest rates signalled earlier in 2026 could temper growth going forward, although markets in some states are showing resilience thanks to sustained demand and limited listings.

The record total value comes amid broader debate over Australia’s housing dynamics, with industry voices arguing that housing supply has lagged behind population growth, a factor that has exacerbated affordability challenges for many Australians.

Westpac senior economist Carolyn McCann said the milestone underlined how strong demand continued to outpace new supply in housing markets, putting further pressure on affordability and competition for buyers

Commonwealth Bank senior economist Trent Saunders said tight supply and strong buyer interest kept upward pressure on prices, “but we could start to see growth slow as higher borrowing costs bite”.

And ANZ senior economist Madeline Dunk said that with listings “well below long‑term averages in many capitals, the imbalance between supply and demand remains a significant challenge for would‑be homebuyers”.