By Tim Graham
The housing markets have witnessed a substantial surge, with burgeoning property prices driving a rapid rise in domestic wealth levels.Â
The Australian Bureau of Statistics has reported that in the March 2023 quarter, the total value of dwellings achieved $9.8 trillion, an increase of 2.6%. In addition, the average cost of dwellings nationally rose to $881, 200, recording a $28,700 hike.Â
Additionally, CoreLogic’s data has indicated that prices have been persistent in their ascent since February, spurred on mainly by a shortfall of homes on the market. This skyrocket in prices has added $300 billion to family wealth in only one quarter. Andrew Wilson, Chief Economist at My Housing Market, forecasts that this upward trend will continue in the future, particularly in metropolitan hubs such as Sydney, Melbourne, and Brisbane.
Despite the surge in dwelling values in most states and territories, Melbourne is unobtrusively trailing behind Sydney. The difference between properties rates in these two cities, which progressed during the pandemic, still remains obvious. In May 2023, Melbourne’s median house value was 29.6% lower than Sydney’s, representing a discrepancy of $382,500.Â
Additionally, other capital cities are making progress in narrowing the gap with Melbourne, aside from Canberra which still holds the title for the second most expensive capital city for houses.Â
Consequently, it can be concluded that housing markets have exhibited remarkable resilience in the face of adversity and a robust rebound, greatly contributing to increased household wealth and economic regeneration.
