Australian property value breaks $8 trillion barrier for the first time: ABS

homes-in-australia-near-the-beach

$8.29 trillion - it’s a barely conceivable figure, but according to quarterly figures released by the Australian Bureau of Statistics (ABS) yesterday, that number represents the new total value of residential dwellings in Australia.

It’s a new high water mark for the value of Australia’s 10.6 million residential properties, swelled on by a record $449.9 billion increase during the March quarter.

As a result, the ABS revealed that the mean residential price in Australia rose by 5.4% over the quarter to $779,000, while property in Australia’s most expensive state (New South Wales) hit a new record average.

"The total value of residential dwellings in Australia surpassed $8 trillion for the first time. NSW accounted for approximately 40 per cent or $3.3 trillion of Australia's total value of dwellings,” said the ABS’s head of prices statistics, Michelle Marquardt.

“The average price of residential dwellings in NSW rose to $1.01 million. This was the first time any state or territory had seen the average price of dwellings rise above $1 million."

As the table below shows, New South Wales may be the most expensive state in the country by some distance, but prices have also increased considerably in every other state over the past quarter.

Mean price of residential dwellings (Source: ABS Residential Property Price Index)

December 2020March 2021Change
NSW$953,300$1,010,0005.9%
VIC$794,100$834,6005.1%
QLD$563,200$586,2004.1%
SA$503,700$524,0004.0%
WA$554,100$582,8005.2%
TAS$498,200$528,4006.1%
NT$458,700$480,4004.7%
ACT$767,100$809,6005.5%

Drilling down, the latest figures also show the continued strength of house prices in particular,  which were up 6.4% over the quarter - the largest increase recorded by the ABS since tracking began in 2002.

Prices of apartments and other ‘attached dwellings’ also rose, but by a relatively modest 2.7%.

“Price rises were observed in all segments of the housing market with growth in house prices continuing to outpace price growth in attached dwellings," Marquardt said.

"Results this quarter were consistent with housing market conditions. Strong demand for housing was supported by record low interest rates, government initiatives, and rising consumer confidence.”

While the latest price figures will no doubt be welcome news to many existing homeowners, they’ll do nothing to sideline concerns about the issue of housing affordability.

According to the Bureau’s latest lending indicators, the number of home loans being taken out by first home buyers has now fallen for three consecutive months, with suggestions that these buyers are, once again, beginning to be priced out of the market.

RELATED: Could first home buyers be shut out as property prices surge?

Looking to enter the property market or refinance your existing mortgage?

Either way, you’ll want to pay a visit to the Mozo home loans hub where you’ll be able to compare the latest rates from a range of lenders or browse through our handy guides, tips and calculators.

Compare home loans - last updated 3 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    5.91% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.