Aussie housing market now worth more than $9 trillion

Aerial shot of an Australian neighbourhood.

Just five months after surpassing the $8 trillion mark, the total value of the Australian residential property market reached $9.1 trillion in September, according to property research firm CoreLogic.

“The increase in value has coincided with national house values reaching $719,209 over September, and units sitting at $586,993,” said CoreLogic Head of Research, Eliza Owen.

“This puts housing values around 28.2 per cent higher than the estimated value of superannuation, the ASX and commercial real estate combined.”

According to recent data from CoreLogic, Australian dwelling values have climbed 20.3 per cent in the year to September — the fastest annual rate of growth the market has experienced since June 1989.

The upswing has been helped along by record low interest rates, which the Reserve Bank of Australia says are unlikely to budge until at least 2024, and strong demand for housing running up against comparatively low supply.

These conditions are expected to push prices up further in the months to come, albeit at a slower pace. Since peaking at 2.8 per cent in March, the monthly rate of growth has now eased to 1.5 per cent. 

RELATED: APRA introduces tougher home loan requirements

This slowdown has been attributed to worsening affordability, which has taken some of the air out of prospective first home buyers’ plans to enter the property market. Between January and July, loans taken out by this cohort fell by 20.5 per cent.

The recent decision by APRA to introduce tougher lending rules will also effectively raise the barrier to entry, though the expectation is only borrowers on the margins will be affected.

“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,” Owen 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.”

For more information on property and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

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