The total worth of Australia’s housing stock has surged by a mammoth $487 billion in just three months and almost $1 trillion in half-a-year to hit an all-time high of $9.25 trillion.
Figures released just by the Australian Bureau of Statistics for the September 2021 quarter also showed the mean price of residential dwellings was $863,700, up 5.1%.
It means that on average across the country, the price of a home jumped by $42,000 in a brief three-month period.
For the first time ever, the value of Australia’s 10.7 million homes soared past the $9 trillion figure, ABS head of prices statistics Michelle Marquardt said.
“The value of Australia’s dwelling stock has risen by nearly $1 trillion in the past six months,” Ms Marquardt said.
“By comparison, the previous increase of just over $1 trillion took 15 months, rising from $7.2 trillion in the December quarter 2019 to $8.4 trillion in the March quarter 2021.”
Is this the fastest price growth in history?
Dwellings in New South Wales account for 40% of the nation’s total home value at $3.7 trillion. The state has led the price growth charge over 2021, with significant buyer demand far outstripping available supply.
The average price of a residential property in NSW has risen to a record level of $1.1 million, Ms Marquardt said.
In the three months to September, house prices across the country rose 5.7% while there was a 3.1% increase in unit prices.
Total dwelling values are now 21.7% higher over the course of 2021, Ms Marquardt said, which is the strongest annual growth seen since the ABS began keeping records in 2003.
Every single capital city saw an increase in dwelling values in the September quarter, either breaking records or recording a rate of growth not seen in “many years”.
It’s not just in major cities where house prices have surged – growth in the regions has been greater in 2021. Picture: Getty Images
Three cities recorded their largest-ever annual increase, with Hobart up 25.7%, Sydney rising 25.4% and Canberra surging ahead 25.2%.
Brisbane and Adelaide both had their largest yearly increase since the March 2008 quarter, up 19.7% and 19% respectively.
In Perth, dwelling values rose 15.7% – the strongest rate seen since the March 2007 quarter.
Darwin’s year-on-year increase of 13.7% was the biggest since the March 2010 quarter, while Melbourne’s 19.5% annual growth rate was the strongest since the June 2010 quarter.
“The September quarter results were consistent with housing market conditions,” Ms Marquardt said.
“Continued solid growth in residential property prices was supported by record low interest rates, strong demand and low levels of stock on the market.”
The results shone a spotlight on the worsening issue of housing affordability once more, Property Council of Australia boss Ken Morrison said.
“While low interest rates have no doubt led to higher house prices, the combination of chronic undersupply, excessive taxes and charges, and inefficient planning systems have also unnecessarily exaggerated the cost of housing,” Mr Morrison said.
“Australians are rightly growing increasingly concerned about the future of home ownership in this country, and like them, the Property Council of Australia is keen to see our political leaders put meaningful plans in place to address it.”
A $1 trillion increase in national dwelling values in the space of just six months should be a wake-up call, he said.
