Australian property value soars to $10 trillion

The value of Australian residential property topped $10 trillion for the first time thanks to 18 months of record low interest rates.

The combined value of all homes and apartments rose 21.4% in the year to March, when the Reserve Bank cash rate was still 0.1%.

An annual increase of $1.8 trillion, from $8.4 trillion a year earlier, took the total value of residential assets to a record high of $10.2 trillion, the Australian Bureau of Statistics revealed on Tuesday. statistics.

Australia’s housing stock is worth triple the $3.4 trillion tied up in retirement savings and has doubled in value over the past decade.

residential property has topped $10 trillion for the first time thanks to 18 months of record high interest rates (pictured is auctioneer Karen Harvey at Hurlstone Park in south-west Sydney last year)” class=”blkBorder img-share” style=”max-width:100%” />

The value of Australian residential property has topped $10 trillion for the first time thanks to 18 months of record high interest rates (pictured is auctioneer Karen Harvey at Hurlstone Park in south-west Sydney last year)

Regional Tasmania saw the biggest increase of 30%, taking the median house price to $520,000.

Brisbane recorded the largest capital increase of 29.3%, taking the median home value to $787,500.

In the NSW region, median house prices jumped 29.1% to $800,300.

Canberra also saw a surge, with the average price of a house with a garden rising 28.3% to $1.065 million.

The median house price in Adelaide rose 23.8% to $650,000, compared to 23.4% for Hobart, which took the value to $753,000.

This was significantly higher than Sydney’s annual increase of 16.4%, taking the median house price to $1.245 million.

Melbourne, which like Sydney was in lockdown for much of last year, saw a more moderate 9.4% rise to $930,000.

Perth recorded the lowest growth of 1.9%, bringing the median house price to $550,000, still affordable for an average income of $90,917.

Regional Tasmania saw the biggest increase of 30%, taking the median house price to $520,000 (pictured is a more upmarket home in Riverside near Launceston)

Regional Tasmania saw the biggest increase of 30%, taking the median house price to $520,000 (pictured is a more upmarket home in Riverside near Launceston)

Australia's housing stock is worth triple the $3.4 trillion tied up in retirement savings and has doubled in value over the past decade

Australia’s housing stock is worth triple the $3.4 trillion tied up in retirement savings and has doubled in value over the past decade

It came as Western Australia was stubbornly cut off from the rest of the country to keep Covid out.

The increases occurred in the year to March, before the Reserve Bank raised the cash rate in May by 0.5 percentage points, the first increase since November 2010, which also put end to 18 months of a record cash rate of 0.1%.

This was followed by another move of half a percentage point in June, with the RBA cash rate now at 0.85%, the highest since October 2019.

New data from Australia’s prudential regulators, also released on Tuesday, showed 23.1% of new home loans had a debt-to-income ratio of six or more in the March quarter.

This figure was lower than the record 24.3% in the December quarter, but still higher than the figure of 18.9% in the March 2021 quarter.

In the New South Wales region, median house prices jumped 29.1% to $800,300 (pictured is The Big Banana in Coffs Harbor on the mid-north coast)

In the New South Wales region, median house prices jumped 29.1% to $800,300 (pictured is The Big Banana in Coffs Harbor on the mid-north coast)

APRA, the banking regulator, considers a debt-to-income ratio of six or more to be risky.

Since November, lenders have been required to assess a borrower’s ability to meet a three percentage point increase in mortgage rates, up from 2.5 percentage points previously.

As the value of Australian residential property surged past $10 trillion, RateCity research director Sally Tindall said tighter lending rules were already slowing the market.

“These new data show that APRA’s stricter service test is starting to have an impact in the field, she said.

“While nobody likes being told ‘no’ from their bank, preventing people from taking on risky levels of debt is a good thing.”

Where house prices REALLY rose before the rate hikes

REGIONAL TASMANIA: Up to 30% to reach $520,000

BRISBANE: Up 29.3 percent to $787,500

NEW SOUTH WALES REGIONAL: Up 29.1% to $800,300

CANBERRA: Up 28.3% to $1,065,000

ADELAIDE: Up 23.8% to $650,000

HOBART: Up 23.4% to $753,000

REGIONAL SOUTH AUSTRALIA: Up 18.7% to $362,000

REGIONAL VICTORIA: Up 17.4% to $640,000

SYDNEY: Up 16.4% to $1,245,000

QUEENSLAND REGIONAL: Up 12.8% to $530,000

DARWIN: Up 12.1% to $600,000

MELBOURNE: Up 9.4% to $930,000

REGIONAL WESTERN AUSTRALIA: Up 4.9% to $425,000

NORTHERN REGIONAL TERRITORY: Up 2.4% to $461,000

PERTH: Up 1.9% to $550,000

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