NSW Average Dwelling Value Surpasses $1 Million
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NSW Average Dwelling Value Surpasses $1 Million

The total value of residential dwellings in Australia has exceeded $8 trillion.

By Terry Christodoulou
Wed, Jun 16, 2021 3:06pmGrey Clock < 1 min

According to the latest figures from the Australian Bureau of Statistics (ABS), the total value of Australia’s 10.6 million residential dwellings rose by $449.9 billion to $8.29 trillion in the March quarter of 2021.

While CoreLogic reported a national residential dwelling value of $8.1 trillion back in May, the amount has now been verified by the ABS.

Moreover, NSW accounted for approximately 40%, or, $3.3 trillion of Australia’s total value of dwellings. The average price of residential dwellings in NSW rose to $1.01 million during the period.

“This was the first time any state or territory had seen the average price of dwellings rise above $1 million,” said ABS Head of Prices Statistics Michelle Marquardt.

Residential property prices rose 5.4% in the March quarter 2021. The ABS confirmed this was the strongest quarterly growth since the December quarter 2009.

All capital cities recorded a rise in residential property prices in the March quarter 2021, with Sydney top of the list (6.1%). Property prices also rose in Melbourne (5.1%)., Perth (5.2%), Brisbane (4 %) Adelaide (4%), Canberra (5.6%), Hobart (6.1%), and Darwin (4.7%).

The average price of residential dwellings in Australia was $779,000 up from $739,000 for the period.

Annually, residential property prices rose 7.5%, with rises in all capital cities.

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Amid looming rate rises, there are reasons to be cheerful as mortgage holders head into 2023

By KANEBRIDGE NEWS
Mon, Feb 6, 2023 2 min

Mortgage holders should brace themselves for more pain as the Reserve Bank of Australia board prepares to meet this afternoon for the first time this year.

Most economists and the major banks are predicting a rise of 25 basis points will be announced, although the Commonwealth Bank suggested yesterday that the RBA may take the unusual step of a 40 basis point rise to bring the interest rate up to a more conventional 3.5 percent. This could present the RBA with the chance to put further rate rises on hold for the next few months as it assesses the impact of tightening monetary policy on the economy.

The decision by the RBA board to make consecutive rate rises since April last year is an attempt to wrestle inflation down to a more manageable 3 or 4 percent. The Australian Bureau of Statistics reports that the inflation rate rose to 7.8 percent over the 2022 December quarter, the highest it has been since 1990, reflected in higher prices for food, fuel and construction.

Higher interest rates have coincided with falling home values, which Ray White chief economist Nerida Conisbee says are down 6.1 percent in capital cities since peaking in March 2022. The pain has been greatest in Sydney, where prices have dropped 10.8 percent since February last year. Melbourne and Canberra recorded similar, albeit smaller falls, while capitals like Adelaide, which saw property prices fall 1.8 percent, are less affected.

Although prices may continue to decline, Ms Conisbee (below) said there are signs the pace is slowing and that inflation has peaked.

“December inflation came in at 7.8 per cent with construction, travel and electricity costs being the biggest drivers. It is likely that we are now at peak,” Ms Conisbee said. 

“Many of the drivers of high prices are starting to be resolved. Shipping costs are now down almost 90 per cent from their October 2021 peak (as measured by the Baltic Dry Index), while crude oil prices have almost halved from March 2022. China is back open and international migration has started up again. 

“Even construction costs look like they are close to plateau. Importantly, US inflation has pulled back from its peak of 9.1 per cent in June to 6.5 per cent in December, with many of the drivers of inflation in this country similar to Australia.”

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