The value of Australia's residential property market has surged to $9.9trillion after growing at the fastest annual pace on record.
The Australian Bureau of Statistics said residential property prices rose 23.7 percent through 2021, meaning that the collective value of the wealth of property owners increased by $2 trillion in just one year alone!
This figure is 30 percent larger than the annual output of the entire Australian economy.
Dwelling values exploded by more than $512 billion in the December quarter alone, the ABS said.
It's hard to fathom the extent to which housing wealth has increased during the pandemic.
Before COVID-19, the ABS valued Australia’s residential property at $7.1 trillion.
It ended in 2021 with a valuation of $9.1 trillion.
To put it another way, the growth in property wealth in the past two years is higher than all the gains over the decade before COVID-19 (2010-2019) combined.
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2024
- Also read:Boom to bust: What makes property prices rise and fall
- Also read:This week’s Australian Property Market Update – Latest Data, State by State November 28th, 2023
Hobart saw the biggest increases over the calendar year, with dwellings growing in value by 29.8%.
Canberra followed close behind, with a 28.8% increase, followed by Brisbane, Sydney, and Adelaide, none of which saw growth below 24%.
Melbourne properties ‘only’ grew in value by 20%, which was still enough to mark the largest annual value increase since the June quarter of 2010. Perth (15.7%) and Darwin (13%) rounded out the capital cities.
In the December quarter of last year, the mean price of residential dwellings in Australia rose by $44,000 to $920,100, up from $876,100 in the September quarter 2021.
The mean price of residential dwellings in NSW rose by $47,700 to $1,207,200 and was the highest in the country.
The second highest mean price was in the Australian Capital Territory ($979,600), followed by Victoria ($956,100).
The lowest mean price ($489,000) was in the Northern Territory.