Australian residential property value at $5.1 Trillion: ABS

Property price increases across the nation's capital cities in the March quarter has pushed the total value of residential dwellings in Australia to $5.1 trillion according to figures released today by the Australian Bureau of Statistics (ABS).

In the March Quarter every capital city in Australia, except Canberra, recorded a property price increases according to the Residential Property Price Index. Sydney led the way with a 2.3 per cent increase, followed closely by Melbourne at 2.1 per cent. Next was Hobart at 1.4 per cent, followed by Perth at 1.1 per cent and Adelaide at 0.7 per cent. Canberra fell 0.1 per cent.

Ms Robin Ashburn, Director of RPPI at the ABS said that while quarterly growth in Sydney had slowed from the December quarter, house prices in Sydney have risen 16.6 per cent throughout the year.

"The rise in prices has contributed to a rise in the total value of residential dwellings to $5.1 trillion in the March quarter 2014," she said. "The average value of Australia's 9.3 million residential dwellings was $546,000."

At its May board meeting the reserve bank of Australia left rates on hold for the ninth consecutive month at 2.50%. Record low interest rates are great for borrowers with existing home loans but the increase in property prices in recent months has sparked debate again about housing affordability for younger generations.

Mozo's Rate Chasers suggest for younger buyers to shop around for the best home loans rates and don't be afraid to haggle with lenders on rates. Buyers can also recruit help from an expert home loan negotiator, a free service from Mozo to help first time buyers get a good deal from the banks.