Australia’s household wealth has grown on the back of the rebounding property market. New Australian Bureau of Statistics figures show household wealth grew by 2.6% in the three months to June, to reach a total of $15.1 trillion.
ABS head of finance statistics, Mish Tan, says the value of residential land and dwellings is behind the growth in wealth, contributing 2.1 percentage points to the result. She says population growth has increased demand for housing, and with supply levels constrained this was driving up property values. CoreLogic figures show the national home value index recorded its sixth consecutive monthly rise in August with values up 0.8% during the month. Tan says superannuation assets also contributed 0.3 percentage points to the growth in household wealth during the quarter.
Confidence of further prices increases in the property market have reached their highest level since December 2021, according to a survey by the Property Council of Australia. Chief executive, Mike Zorbas, says the survey found confidence remains positive within the property industry, especially within individual business.
Despite this, he says there is some anxiety around housing affordability and how to address it.“While governments have tinkered around the edges to provide housing supply in recent months, this survey shows that the property industry is still concerned about the lack of housing supply,” Zorbas says. “Addressing the lack of investment in planning systems that fail to adequately address the essential needs of all Australians is a must.”