CoreLogic today announced its estimate of the total value of residential real estate in Australia has reached a new high of $8.1 trillion.
The surge in value follows the recent broad-based capital gains witnessed across the country, with many markets now at new peak levels.
“The increase in the value of residential real estate has put Australian home owners in a strong equity position, with the RBA estimating just 1.3% of housing loans to be in a negative equity position at the start of 2021.
However 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. Wages growth simply isn’t keeping pace,” says Ms. Owen.
Residential real estate underpins Australia's wealth
These new figures put 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 combined.
And for those who worry about household – mortgage debt, the following chart shows there is a total of $1.9 trillion in debt against the $8.1 trillion total value of our housing market – a very low learn-to-value ratio indeed (less than 24%).
The high end of the property market outperforms
While there is a broad base property boom around Australia, the largest capital cities showed that at the "high" end of the market values markedly outpaced cheaper properties.
However, in smaller cities, capital growth was more uniform.
Overall dwelling values in Australia is 7.8% higher over the last year and currently sit around 7.6% above the previous October 2017 record high.
Now is the time to take advantage of the opportunities the current property markets are offering.
Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.
You can trust the team at Metropole to provide you with direction, guidance, and results.
Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that's exactly what you get from the multi-award-winning team at Metropole.
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.