While Australian property is now valued at a record $11 trillion, there is significant and growing diversity in the nation’s housing marketplaces, according to CoreLogic’s Tim Lawless.
The Australian property market has demonstrated surprising resilience over recent months, but challenges are beginning to emerge, according to Tim Lawless, executive research director for CoreLogic’s Asia-Pacific division. Speaking at the Connective National Conference in Melbourne on Thursday (10 October), Lawless provided a range of insights to help brokers better steer their clients navigating this evolving landscape.
A national obsession
CoreLogic’s data has revealed that the total value of residential real estate breached $11 trillion for the first time in September, increasing by $900 billion over the past 12 months.
Lawless said: “We’re looking at an asset class that’s nearly three times more expensive or more valuable than the superannuation fund we contribute to, and more than three times the value of all the shares we trade on the ASX as well. And it’s where we have the vast majority of Australian household wealth as well.
“It’s probably one of the reasons why property is becoming almost a national pastime for Australians. We have more than 50 per cent of our wealth in this asset class. So the movements in property values and the dynamics are generally important to everybody, regardless if they own a home or not – because most Australians will probably aspire to own a home.”
He noted that house price growth had been accelerating over the pandemic – even with the rising interest-rate environment.
“Nationally, house values are up 14.3 per cent after 20 months of growth since the January 2023 trough,” Lawless said, highlighting the significant rebound the market has experienced while supply remains subdued.
Article Source: https://www.theadviser.com.au/broker/46253-housing-market-diversity-widening-flags-corelogic
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