- Just five months ago the value reached $9 trillion
- Now worth more than the total value of super, commercial real estate and the ASX combined
- Comes as APRA announced tighter rules for new home loan borrowers yesterday
The value of residential real estate in Australia has once again hit a new record, surging to $9.1 trillion, according to CoreLogic.
This comes as only just five months ago it had reached $8 trillion.
The increase in value is thanks to recent broad-based gains nationally with most housing markets now beyond their previous peaks.
The surge is fuelled by Sydney in particular.
“The value of Australian residential real estate has surpassed $9 trillion dollars over September,” explained CoreLogic’s head of research, Eliza Owen.
“This puts housing values around 28.2% higher than the estimated value of superannuation, the ASX and commercial real estate combined.”
Eliza Owen, CoreLogic
According to CoreLogic, national house values reached $719,209 in September with units sitting at $586,993. The dwelling market has also increased by 20.3% in the year to September – the highest rate of annual appreciation since June 1989.
Despite the milestone, Ms Owen believes it is increasingly clear that the housing market moved past its peak in March when national dwelling values increased by 2.8%.
Although growth conditions remain positive given mortgage rates are expected to remain low for some time, she noted affordability constraints are pushing many Australians out of the housing market.
“Affordability is an increasing challenge for many segments of the market, but particularly first home buyers who have not had the benefit of home ownership as a source of wealth through equity generation,” said Ms Owen.
“The announcement this week by APRA of further tightening of serviceability buffers is a subtle approach to financial stability and far less likely to move the housing market into negative territory.”