Australian shares were flat on Wednesday, with the weakness in energy shares limiting gains in technology and communication stocks.

The S&P/ASX 200 Index was little changed to close at 8,187.40.

Among sectors, energy declined 2.5%, followed by a 1.6% fall in materials and a 0.5% slide in real estate.

Conversely, information technology and communications rose 1.4% and 1.3%, respectively. Eight out of 11 sectors were in the green.

On the economic front, the Reserve Bank of Australia's Assistant Governor Christopher Kent said in a speech that the central bank spent AU$9 billion on its term funding facility that was implemented at the height of the COVID-19 pandemic to lower borrowing costs.

"Because the banks passed these lower funding costs in full, household and business borrowers who had locked in low fixed rates were the ultimate beneficiaries as interest rates rose," Kent added.

Meanwhile, the Australian Bureau of Statistics said that the seasonally adjusted number of total dwellings commenced in Australia fell 1.1% to 40,293 in the June quarter compared with the March quarter.

New private sector other residential commencements declined 7.4% to 13,756 dwellings, while new private sector house commencements rose 1.7% to 25,732 dwellings, the report said.

Finally, REA Group (ASX:REA) Chief Executive Officer Owen Wilson said house prices in Australia are expected to grow at a more moderate pace amid an increase in supply.

"With more stock on the market buyers now have a lot more choice, and this should result in the moderation of house price growth," Wilson said in his address at the company's annual general meeting.

In corporate news, Rio Tinto Group (ASX:RIO) signed a definitive agreement to acquire Arcadium Lithium (ASX:LTM) for $5.85 per share in cash. At market close, Rio Tinto's shares fell past 2%, while Arcadium Lithium shares were marginally lower.

Meanwhile, Paladin Energy's (ASX:PDN) takeover target Fission Uranium obtained a final order from the Supreme Court of British Columbia in Canada approving the Western Australian uranium producer's proposed acquisition of Fission Uranium through a plan of arrangement. Paladin Energy's shares ended marginally lower.

Lastly, the Australian Energy Regulator made a draft decision Wednesday recommending that the South West Queensland Pipeline, owned and operated by APA Group (ASX:APA), should not be subject to full price regulation and that existing light regulation should remain. Its shares closed up 3%.