Australia’s Residential Property Market Hits $10.9 Trillion

Increasing Home Prices

According to the Australian Bureau of Statistics (ABS), the market value of Australia's 11 million homes increased to an incredible $10.9 trillion as of June 2024. This is an increase of $225.9 billion from the previous quarter, when the total was $10.7 trillion. During this period, homes grew by 52,900, reaching 11.2 million. From the $10.9 trillion value, households own $10.5 trillion. Most states and territories saw increased home values, except for Victoria, which bucked the trend.

Price Trends

Nationally, the average price of a home rose by $15,600 to $973,000 in the June quarter. While prices increased in almost every state and territory, Victoria was an exception. New South Wales remains the most expensive, with an average price of $1,222,000, followed by the ACT at $953,900 and Victoria at $900,300. The Northern Territory has the lowest average price at $538,000.

Historical Growth

The total value of residential properties has been climbing since March 2023. It hit the $10 trillion mark in March 2022 but saw a dip between June and December 2022. With the possible exception of this decline, the pattern has risen since June 2019, while the value was $6.7 trillion.

Reduced Growth Rates

According to CoreLogic's August 2024 report, the rate of rise in home values has slowed. In the three months ending in July 2024, national home values increased by 1.7%, less than the 3.3% gain in the preceding quarter. The values of the home increased by 7.6% last year, less than the 9.7% growth rate observed in February 2024.?

City-by-City Performance

Perth: The city's home values have increased by 24.7% over the past year and 6.2% in the last quarter.

Brisbane: Home values have reached a new all-time high, jumping 16% over the past year and rising 3.8% just this quarter.

Adelaide: Home values have hit a new peak, climbing 5.5% in the last quarter and up 15.5% over the past year.

Hobart: This is the only city where home values are dropping, down 1.2% from the last quarter and 0.8% from a year ago. Overall, home values have dropped 12.5% from their peak in March 2022.

Melbourne: Home values are 4.4% below their high from March 2022. They’ve risen slightly by 0.2% over the past year, but have decreased by 0.9% this quarter.

Darwin: Home values are 5.2% below their peak from May 2014. Even though there's been a 2.3% increase over the past year, values have slipped by 0.3% this quarter.

Current Market Trends

Housing accounts for 56.2% of household wealth, and outstanding mortgage debt is $2.3 trillion. It currently takes 27 to 33 days to sell a home, though properties in Sydney, Melbourne, and Hobart sit on the market for an average of 54.5 days.

In Summary

While the pace of growth in Australia's housing market has slowed, there are still notable differences in how various regions perform. For more detailed information, read our related Articles or CONTACT US. You can also book a consultation call with us at 1300 GET LOAN or 0456456267.