CoreLogic has announced the estimated total value of residential real estate in Australia has now reached $8.1 trillion.
The surge in value follows the recent broad-based capital gains witnessed across the country, with many markets now at their peak.
CoreLogic head of research Eliza Owen said the Australian dwelling market had reached fresh record highs each month for the past four months.
“But the end of April marked the first time the total value of Australian housing broke the $8 trillion dollar mark,” she said.
“This puts Australian residential property at around four times the size of Australian GDP, and around $1 trillion more than the combined value of the ASX, superannuation and commercial real estate stock combined.”
CoreLogic data shows in the three months to April, national home values rose 6.8 per cent, which is the highest quarterly dwelling growth rate since December 1988.
“The increase in the value of residential real estate has put Australian homeowners in a strong equity position, with the RBA estimating just 1.3 per cent of housing loans to be in a negative equity position at the start of 2021,” Ms Owen said.
“However, for many Australians looking to get a foot on the property ladder, the continued strength in the market is putting home-ownership further out of reach despite record-low mortgage rates.
“Wages growth simply isn’t keeping pace.”
