Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

House prices push average Australian’s wealth even higher in 2022

By Juliet Helmke
27 June 2022 | 1 minute read
suburbs aerial Melbourne reb

Despite worries of a housing downturn, Australians’ wealth actually increased 1.2 per cent on average in the first quarter of 2022 off the back of the housing market.

The Australian Bureau of Statistics (ABS) has reported that the total household wealth held by Australian residents increased by a total of $173 billion in the March quarter, reaching a record $14.9 trillion. Wealth per capita similarly hit a high of $574,807.

According to Katherine Keenan, head of finance and wealth at ABS, continued property price growth was responsible for the significant growth of Australians’ bottom lines.

Advertisement
Advertisement

“While the pace of property price growth started to moderate, with falls in Sydney and Melbourne this quarter, other capital cities and regional areas rose, resulting in an overall rise in house prices of 1.9 per cent nationally,” she explained.

Currency and deposits contributed 0.2 percentage points to growth in the March quarter, while superannuation balances and household loans both detracted 0.3 percentage points from the rate of growth.

For Australians, this latest quarterly increase reflects a continuation of a trend they’ve been experiencing since roughly the start of the pandemic.

In the two years since the March quarter of 2020, household wealth has increased 35.3 per cent, adding $146,008 to the average wealth per capita, the ABS revealed. All told, households accumulated $305 billion in currency and deposits since the start of the pandemic.

The appreciation of residential property assets accounted for most of the growth in household wealth since the onset of COVID-19, rising 39.9 per cent over the two-year period.

Superannuation balances increased 22.5 per cent since March 2020, as share markets were supported by accommodative monetary policy, but have since begun to drop back. Superannuation balances declined 1.3 per cent this quarter as the shaky performance of global share markets impacted the value of overseas assets held in super funds.

The Reserve Bank of Australia (RBA) also noted that while house prices had begun to slide in some markets around Australia, they remained more than 25 per cent higher than pre-COVID levels, supporting elevated household wealth and spending.

It was a substantial factor in the central bank’s decision to raise the cash rate by 50 basis points during its last board meeting and will continue to play a part as the board considers future rate rises in the months ahead, according to the RBA’s governor Philip Lowe. 

House prices push average Australian’s wealth even higher in 2022
suburbs aerial Melbourne reb
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


Juliet Helmke

Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.