Australian residential property prices soar, with New South Wales homes now over $1 million
16 June 2021 | Dr Andrew Wilson, My Housing Market
The value of Australian homes is soaring as record home buying activity pushes prices higher in a once in a generation housing market boom.
The ABS reports that the total value of Australian housing over the March quarter increased sharply by 5.7% compared to the previous quarter, to a new record high $8.29 trillion.
Australian home values have now increased by 13.9% over the past year – the fastest annual rate of growth on record.
All capitals reported increases in home values over the March quarter with NSW the top performer up by 6.4% followed by TAS up 6.3% and ACT up 6.2%.
NSW also reported the highest state average home value over the March quarter at a new record $1,011,100 – and for the first time now over $1 million.
Although housing affordability is falling as prices surge there remains plenty of upside to prices growth through 2021 – for all state markets. And the wealth effect from sharply higher home values will have a positive impact on the recovering Australian economy.
Dr Andrew Wilson is Chief Economist of My Housing Market