PHOTO: Selling Agent and Auctioneer Stewart Kirkby in action at 12 Lucretia Avenue Longueville. Photo: Peter Rae
Australia’s residential property market is tipped to be worth $9 trillion later this year, thanks to skyrocketing house prices and an ongoing construction boom, according to CoreLogic.
At the moment, residential real estate is worth a staggering $8.8 trillion dollars. That’s worth more than Australian superannuation ($3.1 trillion), the Australian stock market ($2.8 trillion) and commercial real estate ($978 billion) combined, CoreLogic’s August indices revealed.
The value of Australian homes only reached $8 trillion in March this year and is on track to reach its next trillion-dollar milestone later in 2021.
“It won’t be too long before it breaks the $9 trillion mark,” said Tim Lawless, CoreLogic research director. “We’re going through a construction boom, and housing values are rising very swiftly.”
As a result, there was more housing stock, and it was worth more, too, he said. More than half of household wealth is held in housing, with $1.9 trillion in outstanding mortgage debt.
“Household spending is the biggest component of economic activity. This is why we have so much attention on the housing market,” Mr Lawless said.
While the market was still red hot, it was “not as hot” as it has been due to affordability constraints and lockdowns starting to slow down the rate of growth, he said.
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