Australia’s property market passes $10trn milestone
2/10/2023
The combined value of Australian real estate reached $10 trillion at the end of August, according to CoreLogic, which is the first time it’s reached this level since June 2022.
The increase resulted from a combination of more properties being built and the value of Australia’s housing increasing.
Soon after reaching the $10 trillion mark last year, the property market began a 10-month downswing, during which the national median property price fell 9.1%. Since March, prices have risen in six consecutive months, increasing by a combined 4.9%. However, the outlook is uncertain, according to CoreLogic.
“While there is a growing expectation that the RBA board is done hiking the cash rate, borrowing remains constrained by a relatively high serviceability buffer,” CoreLogic said.
“APRA [banking regulator] data to June showed the weighted average home loan assessment rate was just below 9%, and Australian Bureau of Statistics housing lending data shows mortgage lending has fallen for three of the past four months.”
