Wealth as safe as houses in Australia
Despite falling values over the past year, housing is still the backbone of national wealth
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Residential real estate is the foundation of Australia’s wealth, new data released by CoreLogic reveals.
The Monthly Housing Chart Pack shows residential real estate in Australia is far and away the main source of wealth, worth $9.4 trillion. This compares with $3.4 trillion for superannuation, $2.8 trillion for Australian listed stocks and $1.3 trillion for commercial real estate.
The results show that despite a recent downturn in national dwelling values over the past 12 months with a fall of -8.0 percent, housing still represents the most valuable source of wealth.
While the decline in values represents the greatest fall on record, there are signs that values are once again on the increase. CoreLogic reports that national values rose by 0.9 percent over the 28 days to April 6, driven by a lack of advertised stock, a tight rental market and demand from overseas migration.
Sydney experienced the greatest decline over 2022, with a drop in values of -12.1 percent, following a record high in January 2022. It is also leading the recovery, up 1.4 percent in March. This is followed by Melbourne and Brisbane, who have seen modest but steady improvements in values over March. Adelaide and Perth have proven to be less volatile markets, with Adelaide values -2.4 percent their record high in July 2022 and Perth -0.4 percent lower off their peak, also in July last year.
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More than one fifth of Australians are cutting back on the number of people they socialise with
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Australian social circles are shrinking as more people look for ways to keep a lid on spending, a new survey has found.
New research from Finder found more than one fifth of respondents had dropped a friend or reduced their social circle because they were unable to afford the same levels of social activity. The survey questioned 1,041 people about how increasing concerns about affordability were affecting their social lives. The results showed 6 percent had cut ties with a friend, 16 percent were going out with fewer people and 26 percent were going to fewer events.
Expensive events such as hens’ parties and weddings were among the activities people were looking to avoid, indicating younger people were those most feeling the brunt of cost of living pressures. According to Canstar, the average cost of a wedding in NSW was between $37,108 to $41,245 and marginally lower in Victoria at $36, 358 to $37,430.
But not all age groups are curbing their social circle. While the survey found that 10 percent of Gen Z respondents had cut off a friend, only 2 percent of Baby Boomers had done similar.
Money expert at Finder, Rebecca Pike, said many had no choice but to prioritise necessities like bills over discretionary activities.
“Unfortunately, for some, social activities have become a luxury they can no longer afford,” she said.
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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
