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Australians are becoming wealthier – and it’s thanks to property

By Grace Ormsby 24 September 2021 | 1 minute read

Wealth per capita is now sitting at a record high of $522,032, thanks to record-high property prices.

Australians are becoming wealthier

The latest figures from the Australian Bureau of Statistics have revealed that total household wealth increased 5.8 per cent – or $735 billion in the June quarter 2021.

This means household wealth levels are now sitting at a record $13,433.7 billion.

Averaged out by the Australian population, wealth per capita has also risen to a record-high of $522,032.

It was the rising value of residential property assets that contributed most to the increased figures, at 4.5 percentage point.

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In comparison, superannuation balances and directly held shares only contributed an extra 1.1 and 0.3 percentage points respectively to wealth figures.

The head of finance and wealth at the ABS, Katherine Keenan, re-iterated that the growth in household wealth is continuing to be driven by residential property prices.

Over the same period, the ABS reported Australian property prices as recording their strongest quarterly growth on record, at 6.7 per cent.

According to Ms Keenan, “the strong property price growth reflected record-low interest rates, rising consumer confidence, and demand being greater than the levels of housing stock on the market”.

It is important to note that this data does not take into account property market activity during the widespread lockdowns that have impacted many of the east coast property markets.

Any knock-on effects from these lockdowns and/or tighter restrictions will be evident in the September quarter reporting period.

RELATED TERMS

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.



Australians are becoming wealthier – and it’s thanks to property
Australians are becoming wealthier
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