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.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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Leaders in Australia’s property industry are calling on the RBA to hit the pause button on further interest rate rises following yesterday’s announcement to raise the cash rate to 4.1 percent.

CEO of the REINSW, Tim McKibbin, said it was time to let the 12 interest rate rises since May last year take effect.

“The REINSW would like to see the RBA hit pause and allow the 12 rate rises to date work their way through the economy. Property prices have rebounded because of supply and demand. I think that will continue with the rate rise,” said Mr McKibbin.  

The Real Estate Institute of Australia  today released its Housing Affordability Report for the March 2023 quarter which showed that in NSW, the proportion of family income required to meet the average loan repayments has risen to 55 percent, up from 44.5 percent a year ago.

Chief economist at Ray White, Nerida Conisbee, said while this latest increase would probably not push Australia into a recession, it had major implications for the housing market and the needs of ordinary Australians.

“As more countries head into recession, at this point, it does look like the RBA’s “narrow path” will get us through while taming inflation,” she said. 

“In the meantime however, it is creating a headache for renters, buyers and new housing supply that is going to take many years to resolve. 

“And every interest rate rise is extending that pain.”

In a speech to guests at Morgan Stanley’s Australia Summit released today, Governor Philip Lowe addressed the RBA board’s ‘narrow path’ approach, navigating continued economic growth while pushing inflation from its current level of 6.8 percent down to a more acceptable level of 2 to 3 percent.

“It is still possible to navigate this path and our ambition is to do so,” Mr Lowe said. “But it is a narrow path and likely to be a bumpy one, with risks on both sides.”

However, he said the alternative is persistent high inflation, which would do the national economy more damage in the longer term.

“If inflation stays high for too long, it will become ingrained in people’s expectations and high inflation will then be self-perpetuating,” he said. “As the historical experiences shows, the inevitable result of this would be even higher interest rates and, at some point, a larger increase in unemployment to get rid of the ingrained inflation. 

“The Board’s priority is to do what it can to avoid this.”

While acknowledging that another rate rise would adversely affect many households, Mr Lowe said it was unavoidable if inflation was to be tamed.

“It is certainly true that if the Board had not lifted interest rates as it has done, some households would have avoided, for a short period, the financial pressures that come with higher mortgage rates,” he said. 

“But this short-term gain would have been at a much higher medium-term cost. If we had not tightened monetary policy, the cost of living would be higher for longer. This would hurt all Australians and the functioning of our economy and would ultimately require even higher interest rates to bring inflation back down. 

“So, as difficult as it is, the rise in interest rates is necessary to bring inflation back to target in a reasonable timeframe.”


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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