- CoreLogic has revealed that its estimate of the total value of residential real estate in Australia has set a new high of $9.1 trillion
- This comes only five months after residential property values hit the $8 trillion mark
- The rise in valuation puts housing values around 28.3 per cent higher than the estimated value of superannuation, the ASX and commercial real estate
CoreLogic today revealed that its estimate of the total value of residential real estate in Australia had set a new high of $9.1 trillion, only five months after hitting $8 trillion.
The increase in value follows recent broad-based capital gains seen across the country, with most housing markets now past their peaks.
CoreLogic head of research Eliza Owen said the rise in valuation put housing values around 28.3 per cent higher than the estimated value of superannuation, the ASX and commercial real estate combined.
“The increase in value has coincided with national house values reaching $719,209 over September and units sitting at $586,993,” she 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.”
CoreLogic’s national home price index climbed by 1.5 percent in September, putting Australian property prices 17.6 percent higher in the first nine months of the year and 20.3 per cent higher in the previous year.
Even though growth conditions remain positive, buoyed by the expectation that mortgage rates will remain at record lows for an extended period of time and strong demand is bolstered by persistently low advertised supply levels, evidence is growing that we have reached peak growth rates.
The highest pace of growth occurred in March when national dwelling values grew by 2.8 per cent. Since then the monthly pace of growth has slowed to 1.5 per cent.
“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,” Ms 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.”