The value of Australian dwellings sold in the past year now equals up to a third of the value of the national economy.
Home settlement figures from conveyancing platform PEXA reveal a 57.3% increase in the value of settlements in 2021.
The total value of transactions was $688.7 billion, after home values increased at their fastest pace in 30 years.
Across Queensland, New South Wales, Victoria, Western Australia and South Australia, the number of transactions in 2021 increased by almost 32%, substantially higher than the 7.2% increase recorded in 2020.
Analysts predict the value of Australia’s housing stock, which hit $9 trillion in October, will be much higher by the end of 2022 even though some believe the pace of property price growth will ease in some markets this year.
PEXA Insights chief data and analytics officer Scott Butterworth says the industry is unsure what affect the opening of international borders and return of migrants will have on the property market this year.
“We’ve had record volumes at a time when migration flows have been basically zero, so what happens when those borders are reopened?” Butterworth says.
January figures show a 10% increase in settlements across Queensland, New South Wales and Victoria.
In 2021, Victoria recorded the biggest increase in the value of settlements, followed by NSW and Queensland.
WA had the biggest increase in the number of transactions in 2021, with sales increasing 41.4% followed by Queensland with 40.8%.