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Feeling wealthy? Aussie house values jump $1 trillion in five months


The value of Australia’s residential housing has jumped $1 trillion in five months, according to CoreLogic.


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The total value now stands at $9.1 trillion, a new record following price growth of about 20 per cent a year.

CoreLogic head of research Eliza Owen said the increase meant that house values were now about 28 per cent higher than the combined value of superannuation, the ASX and commercial real estate.

“The increase in value has coincided with national house values reaching $719,209 over September and units sitting at $856,993,” Owen said.

“The Australian dwelling market increased 20.3 per cent in the year to September, which is the highest rate of annual appreciation since June 1989.”

The booming price growth forced the hand of the banking regulator, APRA, which yesterday told banks to increase the interest rate buffer used to calculate whether a borrower could cope with increases in mortgage rates.

CoreLogic said it was apparent that the housing market was now past the peak, reached in March when house values jumped 2.8 per cent in a month.

“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 the further tightening of servicabilty buffers is a subtle approach to financial stability and far less likely to move the housing market into negative territory.”



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