The ABS yesterday released its property price data for the March quarter, which valued Australia’s dwelling stock owned by households at $7.9 trillion, whereas the total housing stock was valued at $8.3 trillion.
As shown below, the ratio of the dwelling stock owned by households against Australian GDP hit a record 4.0 times as at March 2021, up from June 2019’s trough of 3.3 times GDP. The total housing stock was valued at a record 4.2 times GDP in the March quarter, up from the last trough of 3.4 times GDP as at June 2019:
Similarly, the total value of Australia’s dwelling stock owned by households hit a record 8.2 times employee incomes as at March 2021, up from June 2019’s trough of 7.0. The total housing stock was valued at a record 8.6 times employee incomes in March, up from the last trough of 7.3 trillion in June 2019:
When divided by Australia’s estimated resident population, Australia’s dwelling stock owned by households was worth a record $307,200 per head of population in the March quarter, up from the 2019 trough of $259,700 in real inflation-adjusted terms:
Interestingly, CoreLogic’s latest chart pack reported that Australia’s residential real estate was valued at $8.4 trillion as at May 2021, which is marginally above the ABS’ estimate.
Given the pace of dwelling value growth, alongside record construction rates, Aussie dwelling values will likely exceed $9 trillion by year’s end.