Value of Aussie housing market nears eye-watering $12 trillion

Sky-high property prices across the country have driven the total value of Australia’s residential housing market to a record $11.9 trillion.

New data from the Australian Bureau of Statistics has revealed the value of Australia’s 11.41 million homes rose by 2.7% in the September quarter, to be $317 billion higher than three months earlier.

More than 53,000 new homes were added during the quarter.

ABS head of finance and statistics Mish Tan said home prices rose in all states and territories, with the average price of residential dwellings lifting by $23,000 to $1,045,400.

“Queensland is the second state after New South Wales with a mean dwelling price of over $1 million, following a rise of 3.5% or $33,900 in the September quarter 2025,” Ms Tan said.

According to the ABS, the largest rises were seen in Western Australia (4.5% or $40,800), Queensland (3.5% or $33,900) and the Northern Territory (5.3% or $28,400).

The housing market’s value is around four times that of the Australian share market, which has a total market capitalisation of roughly $3 trillion.

It’s worth almost double the world’s largest company, Nvidia, which has a market cap of about $6.7 trillion ($US4.4 trillion).

Home prices have continued to rise to new record highs across the country in the months following September.

The ABS figures come a day after the latest PropTrack Home Price Index found national home prices rose 0.5% in November and are now 8.7% higher than a year ago.

PropTrack senior economist Eleanor Creagh said lower interest rates, increased borrowing capacities, and a recovery in sentiment have underpinned this year’s reacceleration.

While hotter-than-expected inflation has dampened expectations for further rate cuts this cycle, Ms Creagh noted several factors will continue to support home price growth in the months ahead.

“Population inflows, a lift in investor activity, and the expanded Home Guarantee Scheme have reinforced demand, alongside this year’s series of interest rate cuts,” she said.

“Further, the federal government’s low-deposit, shared equity scheme will open for applications from Friday December 5.

“At the same time, total stock on market has been tight, and the delivery of new housing remains constrained, tilting conditions toward sellers.

“These factors point to further price gains through summer.”

ANZ on Tuesday became the latest major bank to scrap forecasts for another rate cut in 2026, citing recent inflation pressures.

“With today’s forecast change – removing the final 25bp easing – we now expect the cash rate to remain at 3.60% for an extended period,” ANZ head of Australian economics Adam Boyton said.

Ms Creagh noted the 0.5% increase in property prices last month was slightly weaker than October’s 0.6% gain, with stretched affordability expected to keep a lid on the pace of price growth next year.

“Monthly growth eased across the capitals from October’s stronger pace, and with interest rates now expected to remain on hold for an extended period, affordability constraints are likely to see price growth moderate throughout 2026,” she said.

“National annual growth is a little above the past decade’s average, not a re-run of the 20–30% surges of earlier booms.”

PropTrack data shows housing affordability remains near its worst level on record despite a slight improvement this year.

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