With this new figure, real estate has become the primary pillar of Australian wealth
The housing sector in Australia has achieved a new record as its total value reaches AUD8.1 trillion (USD6.3 trillion) for the first time in history, reported Yahoo! Finance, sharing new data released by CoreLogic.
The country’s major cities and regions have been experiencing a steady growth in prices for the succeeding months, which caused the total value to tip over the previous numbers and enabling most markets to hit their peak.
Head of research at CoreLogic, Eliza Owen, said: “The Australian dwelling market has reached fresh record highs for the past four months, but the end of April marked the first time the total value of Australian housing broke the AUD8 trillion dollar mark.”
Since December 1988, the fastest quarterly growth rate occurred in the three months to April as home prices surged by 6.8 percent throughout the country.
Housing values soared by 1.8 percent in April, whereas home prices grew by 2.8 percent in March, the fastest monthly stride witnessed in 32 years.
According to the report, the AUD8.1 trillion figure has enabled the real estate market to become the leading pillar of Aussie wealth, paving the way for developers — particularly PropertyGuru Asia Property Awards (Australia) 2020 winners Balfour Group, Thirdi Group & Phoenix Property Investors, Weston Property Developments, TrueVine Global Pty Ltd, and DW Architects and Interiors — to thrive in the midst of the uncertain economy.
Owen explained that this record-breaking number “puts Australian residential property at around four times the size of Australian GDP, and around AUD1 trillion more than the combined value of the ASX, superannuation, and commercial real estate stock combined.”
To put it into perspective, the superannuation sector in Australia is valued at AUD3 trillion, ASX at AUD2.7 trillion, and commercial real estate at less than AUD1 billion.
Whilst homeowners may be celebrating the groundbreaking figure, first-home buyers fear the unaffordability of the housing market.
“For many Australians looking to get a foot on the property ladder, the continued strength in the market is putting homeownership further out of reach despite record-low mortgage rates,” said Owen.
“Wages growth simply isn’t keeping pace.”
Most of the growth in overall home prices were driven by the country’s regional areas. Together, the capital cities’ value grew by 6.4 percent, while all the regions surged by 13 percent in the 12 months to April.
Among said cities, Darwin rose above the rest, earning a 15.3 percent growth from April of last year. Canberra followed suit with a 14.2 percent rise and Hobart with a 13.8 increase.
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