Broad-based capital gains across the country have pushed the total value of residential real estate across the $9 trillion mark, with most housing markets said to have moved beyond their peak, new CoreLogic data has revealed.
The latest boost puts housing values around 28.2 per cent higher than the estimated value of superannuation, the ASX and commercial real estate combined.
“The value of Australian residential real estate has surpassed $9 trillion over September. This comes just five months after the market exceeded $8 trillion over April,” said CoreLogic head of research, Eliza Owen.
“The increase in value has coincided with national house values reaching $719,209 over September, and units sitting at $586,993. The Australian dwelling market increased 20.3 per cent in the year to September, which is the highest rate of annual appreciation since June 1989,” Ms Owen noted.
Moving forward, however, Ms Owen deduced the housing market has moved past its peak rate of growth witnessed in March when national dwelling values increased by 2.8 per cent.
“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,” she said.
“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,” Ms Owen added.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
