Terry’s View – Property Pushes Up Wealth

Rising property prices have helped drive up Australia’s household wealth to record levels, surpassing  $17 trillion for the first time.

According to Australian Bureau of Statistics figures, household wealth has jumped  57% in the past five years, from $11 trillion in 2020 to $17.3 trillion in the March 2025 quarter.

Real estate plays a big role in that growth, as it now accounts for more than two-thirds of total household wealth in Australia.

The combined value of property assets rose by $652 billion in the past 12 months, to a total value of $11.7 trillion, which is higher than the total value of Australian superannuation ($4.14 trillion) and the share market ($1.87 trillion).

The data shows that real estate remains the cornerstone of Australian financial security.

Property has added more to household wealth than any other single asset class since 2020 and it remains the primary vehicle for wealth accumulation, particularly through capital gains and inter-generational transfers.

Looking ahead, Australia’s strong property bias, coupled with an ageing population and intergenerational wealth transfers, is expected to keep property at the heart of household wealth creation for years to come.

CommSec economist, Ryan Felsman, says the March quarter growth in household wealth overall was the weakest since late 2022, but momentum is likely to rebound.