Invest
Australian housing market now valued at $8 trillion
The Australian dwelling market has reached a new record high, with the total value of residential real estate breaking the $8 trillion mark for the first time.
Australian housing market now valued at $8 trillion
The Australian dwelling market has reached a new record high, with the total value of residential real estate breaking the $8 trillion mark for the first time.
Following recent broad-based capital gains across the country, with many markets said to be at their peak, residential real estate now makes up the bulk of Australia’s wealth, CoreLogic data has revealed.
According to the data, Australia now boasts 10.6 million dwellings worth $8.1 trillion.
“This puts Australian residential property at around four times the size of Australian GDP, and around $1 trillion more than the combined value of the ASX, superannuation and commercial real estate stock,” said CoreLogic’s head of research, Eliza Owen
As such, an average 53 per cent of household wealth is held in housing.
The growth in housing value is underpinned by the 6.8 per cent property price increase recorded in the three months to April — the highest quarterly growth in more than 30 years. Individually, every capital city recorded a rapid rate of appreciation in home values, ranging from a quarterly rise of 8.8 per cent in Sydney to 4.2 per cent in Perth.
Overall, dwelling values in Australia are 7.8 per cent higher over the year, and currently sit around 7.6 per cent above the previous October 2017 record high.
This strong increase in the value of residential real estate has put Australian home owners in a strong equity position, with the Reserve Bank of Australia (RBA) estimating just 1.3 per cent of housing loans were in a negative equity position at the start of the year.
First home buyers, however, are said to be facing greater affordability constraints, with finance acquired by first-timers, as a portion of lending to owner-occupiers, down nationally to 30.4 per cent.
“For many Australians looking to get a foot on the property ladder, the continued strength in the market is putting home ownership further out of reach despite record-low mortgage rates,” Ms Owen said.
“Wages growth simply isn’t keeping pace.”
While alternative purchasing methods are on the rise, including rentvesting, “the bank of mum and dad” and fractional investing, Ms Owen believes first home buyer numbers are set to decline in 2021.
Overall, CoreLogic’s data shows a growth in sales volumes of 22.6 per cent nationally over the 12 months to April. Regional growth is said to be at 34.0 per cent, while capital cities saw a cumulative increase of 16.1 per cent.
As for rents, national values have risen by 4.9 per cent in the year to April, following a long period of subdued rental conditions, and a fall in rents at the onset of COVID-19. Darwin led the rental charge with growth of 18.0 per cent, followed by Perth with 15.7 per cent.
According to CoreLogic, with housing values generally outperforming rents, yields are trending lower, with the exception of Perth and Darwin.
Currently, the biggest problem for the real estate market is a lack of volume, but CoreLogic has reported a substantial increase in fresh listings to the market through April, with the figure said to be 18.3 per cent above the five-year average level for this time of year.
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
