Aussie housing valuations obliterate all records

By Leith van Onselen

The ABS on Tuesday released its property price data for the June quarter, which valued Australia’s dwelling stock owned by households at a record $6.39 trillion, whereas the total housing stock was valued at a record $6.73 trillion.

As shown below, the total value of Australia’s dwelling stock owned by households was an all-time high 7.7 times employee incomes as at June 2017, up from 7.2 times incomes a year prior, whereas the total housing stock was valued at 8.2 times employee incomes:

Similarly, the ratio of the dwelling stock owned by households against Australian GDP hit a record 3.6 times as at June 2017, up from 3.5 times GDP a year prior, whereas the total housing stock was valued at 3.8 times GDP:

When divided by Australia’s population, Australia’s dwelling stock owned by households was worth a record high $260,000 per head of population:

Australia’s capital city house prices also rose to a record high 32-times times rents as at August 2017, up from 31-times rents a year earlier, according to CoreLogic. As expected, this was led by Melbourne and Sydney, where valuations are extreme:

The bubble continues to inflate, driven by Sydney and Melbourne!

[email protected]

Comments are hidden for Membership Subscribers only.