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  • The housing market has been going from strength to strength, and now CoreLogic estimates that the value of residential real estate in Australia has reached $8.1 trillion
  • The surge in value follows the recent broad-based capital gains witnessed across the country, with many markets now at their peak
  • CoreLogic data shows in the three months to April, national home values rose 6.8 per cent, which is the highest quarterly dwelling growth rate since December 1988
  • Every capital city is recording a rapid rate of appreciation in home values, according to CoreLogic, ranging from a quarterly rise of 8.8 per cent in Sydney to 4.2 per cent in Perth
  • CoreLogic estimated that the commercial real estate sector enjoyed a valuation of $961 billion

The housing market has been going from strength to strength, and now CoreLogic estimates that the value of residential real estate in Australia has reached $8.1 trillion.

The surge in value follows the recent broad-based capital gains witnessed across the country, with many markets now at their peak. 

“The Australian dwelling market has reached fresh record highs for the past four months, but the end of April marked the first time the total value of Australian housing broke the $8 trillion dollar mark,” CoreLogic head of research Eliza Owen said.

“This puts Australian residential property at around four times the size of Australian GDP, and around $1 trillion more than the combined value of the ASX, superannuation and commercial real estate stock combined,” Owen added. 

CoreLogic data shows in the three months to April, national home values rose 6.8 per cent, which is the highest quarterly dwelling growth rate since December 1988. 

Dwelling values in Australia are 7.8 per cent higher over the year, and currently sit around 7.6 per cent above the previous October 2017 record high, according to CoreLogic.

Every capital city is recording a rapid rate of appreciation in home values, CoreLogic said, ranging from a quarterly rise of 8.8 per cent in Sydney to 4.2 per cent in Perth.

“The increase in the value of residential real estate has put Australian home owners in a strong equity position, with the RBA estimating just 1.3 per cent of housing loans to be in a negative equity position at the start of 2021,” Owen said.

“However for many Australians looking to get a foot on the property ladder, the continued strength in the market is putting home ownership further out of reach despite record low mortgage rates. Wages growth simply isn’t keeping pace,” she concluded.

In their Monthly Chart Pack report for May, CoreLogic said there are 10.6 million dwellings, $1.9 trillion of outstanding mortgage debt and that 53 per cent of household wealth is held in housing.

The company also said that per annum there has been a total of over half a million sales clocking in at $331 billion value.

CoreLogic estimated that the commercial real estate sector enjoyed a valuation of $961 billion.

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