Aussie housing valuations finally retrace from peak

By Leith van Onselen

The ABS on Tuesday released its property price data for the September quarter, which valued Australia’s dwelling stock owned by households at a record $6.44 trillion, whereas the total housing stock was valued at a record $6.78 trillion.

As shown below, the total value of Australia’s dwelling stock owned by households was 7.69 times employee incomes as at September 2017, down slightly from 7.74 times incomes in the June quarter, whereas the total housing stock was valued at 8.09 times employee incomes, down from 8.14 times incomes in the June quarter:

Similarly, the ratio of the dwelling stock owned by households against Australian GDP was 3.62 times as at September 2017, down slightly from 3.66 times GDP in the June quarter, whereas the total housing stock was valued at 3.81 times GDP in the September quarter, down from 3.86 times GDP in the June quarter:

When divided by Australia’s population, Australia’s dwelling stock owned by households was worth $260,737 per head of population in the September quarter, down slightly from $262,835 in the June quarter in real inflation-adjusted terms:

This is the first decline in Australian housing values since 2012 and signals that Australia’s long housing boom is coming to an end.

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