Will this highly contagious strain of COVID-19 affect property values?
The Australian property market is currently going through an unprecedented period of change, as Australia emerges from two years of recurring coronavirus lockdowns and into a period of high inflation and low consumer confidence.
Now, after a record-breaking 18 months for the Australian property market, there are a few questions on every property investor’s mind. What happens next? Will the current rate of growth continue? Or, is this the beginning of a property market downturn?
In order to gain a better understanding of the current and future climate surrounding the Australian property market, we’ve chosen seven charts that are particularly informative for Australian property investors to understand the market moving forward.
The total value of Australia’s residential real estate exceeds Australian Super, ASX-listed Stocks, and Commercial Real Estate combined.
During the twelve months of 2021, Australia’s residential property market climbed in value more than any other year since the ABS began its residential property prices index report in 2003.
The total value of Australia’s residential real estate climbed by $2 trillion in 2021, reflecting a 23.7% increase over the 12 month period and driving the total value of Australia’s residential property market to $9.9 trillion.
The mean price of residential dwellings increased by $44,000, reaching an average of $920,100 nationwide. This has meant that it takes the average Australian nine years to save enough for a 20% deposit on a home compared with the four years of savings required for a deposit in 1990.
As a result of this parabolic price growth, Australia’s property market is now worth more than the value of Australian super funds, ASX Listed stocks and the total value of commercial real estate combined.
