CoreLogic’s August Housing Chart Pack showed that the total value of Australia’s housing stock had risen to a whopping $8.8 trillion dollars:
Housing dominates economy.
This dwarfs other asset classes, with real estate valued at more than Australia’s total superannuation wealth ($3.1 trillion), listed stocks ($2.8 trillion) and commercial real estate ($978 billion) combined.
New CoreLogic data reveals the massive housing divide across Australia, with Sydney and Melbourne’s residential real estate markets individually worth more than the rest of the state and territory capital city markets combined:
The total value of residential real estate in Sydney was worth an eye-watering $2.53 trillion at the beginning of this financial year while Melbourne’s totalled $1.74 trillion, according to CoreLogic figures.
When Brisbane, Adelaide, Perth, Canberra, Hobart and Darwin’s market values are added together, they total to $1.694 trillion.
- Sydney $2.53 trillion
- Melbourne $1.74 trillion
- Brisbane $626.7 billion
- Adelaide $307.5 billion
- Perth $528.8 billion
- Hobart $62.3 billion
- Darwin $25.9 billion
- Canberra $143 billion…
“I’m pretty sure in the next couple of months that’ll probably tick over the $9 trillion mark, it’s moving that quickly,” said Tim Lawless, CoreLogic’s head of research, adding that this huge dwelling value disparity is almost unique to Australia.
The above value disparity is why I remain bullish on Brisbane property, whose relative affordability against Sydney and Melbourne is running at an historical high:
Given Sydney’s and Melbourne’s painful hard lockdowns, it is easy to foresee a flood of inter-state migration to South East Queensland, where affordability and lifestyle are far more appealing.
The 2032 Brisbane Olympics will also provide more housing stimulus.
