Australian real estate market surpasses $ 9 trillion valuation
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Just five months after reaching a value of $ 8 trillion, CoreLogic today announced that its estimate of the total value of residential real estate in Australia has broken a new record high of $ 91 trillion.
The rise in value follows recent large-scale capital gains seen across the country, with most housing markets now past their peak.
CoreLogic’s head of research, Eliza Owen, says: âAustralian residential property was valued at over $ 9 trillion in September. This comes just five months after the market topped $ 8 trillion in April.
âThis places home values ââabout 28.2% above the estimated value of superannuation, ASX and commercial real estate combined.
âThe increase in value coincided with national home values ââhitting $ 719,209 in September and units hitting $ 586,993. The Australian housing market grew 20.3% through September, the highest annual appreciation rate since June 1989, âsays Owen.
While growth conditions remain positive, supported by the expectation that mortgage rates will remain at record highs for an extended period and that strong demand is supported by consistently low supply levels announced, it is becoming increasingly clear that the housing market exceeded its record growth rate in March when national housing values âârose 2.8%.
âAffordability is a growing challenge for many segments of the market, but particularly for first-time home buyers who have not benefited from homeownership as a source of wealth through the generation of equity. APRA’s announcement this week of a further tightening of the sustainability pillars is a subtle approach to financial stability and much less likely to tip the housing market into negative territory, âsaid Ms. Owen.
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