ABS Wealth Record
Australians are the wealthiest ever, per person. Images – Canva
  • The ABS has reported a record wealth per capita in Australia
  • This comes after a strong March quarter this year
  • Strong growth in residential property prices have stimulated the growth

According to figures released by the Australian Bureau of Statistics (ABS) wealth per capita (person) in Australia rose to a record high of $492,055 in the March quarter this year.

Driven largely by rising residential property prices, the total household wealth increased 4.3% in the first quarter of 2021, reaching the total household wealth figure of $12,664.5 billion.

The Head of Finance at the ABS, Kathrine Keenan, broke down the drivers of growth.

“Residential assets contributed 3.5 percentage points to the quarterly growth in household wealth, followed by superannuation balances and directly held shares, at 0.6 and 0.2 percentage points.

“Growth in household wealth continued to be driven by rising residential property prices”

Kathrine Keenan, ABS Head of Finance

Ms. Keenan says the growth reflects “…record low interest rates, support through a range of government incentives and recovery in the labour market.”

“Household wealth grew more in the last year than it did during the preceding three years combined. Over the three years prior to March 2020, household wealth grew 11.4 per cent.”

In the current uncertain climate, there is a savings mood among Aussies. Deposit assets (or total cash) held by banks rose to an unprecedented $304.5 billion in the March quarter. The mood is also reflected in recent research by Finder reporting that 35% of Australians plan on saving their tax refunds this year.

The high levels of deposit assets are also likely linked to the Reserve Bank of Australia (RBA) injecting liquidity into the financial system. This is consistent with current expansionary monetary policy goals, trying to get the economy roaring along, in order to lower unemployment below 5% and increase wage inflation.

You May Also Like

Australian building costs have continued to soar, but has your insurance cover kept pace?

MCG Quantity Surveyors analysis found underinsurance could cost homeowners over $100K to replace a property, with the issue even more profound in the commercial property sector.

When will Australian property prices fall? One major challenge continues to prop prices up

Property prices are up by over 35% across the country since Covid, and while not the same story in each city, that’s little solace to prospective buyers pulling their hair out.

A window of opportunity could be open for savvy Australian property investors, but time is ticking

One expert has noticed investors are on the move while there’s less competition and fewer buyers in the marketplace.

Why Aussie property buyers aren’t waiting for rate cuts anymore

A surge in home loans shows buyers aren’t waiting for interest rates to drop before taking the plunge.