11 Aug 2015 By: Greg Hocking 0 Comment
You’ll understand my excitement at news this week that the Aussie property market has reached a new value milestone. The nation’s property market is now worth $6 trillion, excluding vacant land; a rise of $2 trillion since 2009 and a result achieved on the strength of current unstoppable demand for residential real estate.
Excluding vacant land, CoreLogic RP Data head of research Tim Lawless said reaching the $6 trillion mark last month marked a new milestone for Australia’s residential property market.
“It is worthwhile refreshing ourselves on exactly what one trillion is,” CoreLogic RP Data head of research Tim Lawless remarked.
“One trillion is a thousand billions or a million millions – we are talking big numbers here.
“The debt held against that $6 trillion is only (approximately) $1.49 trillion (as at June 2015), so the value of the asset class is worth more than four times the debt held against it.”
Mr Lawless’s comments are a welcome and timely counter to some recent reports suggesting our market is heading for collapse under the weight debt caused by investor leveraging. It is clearly not. Less than 25% of the value of the housing market is owned by the banks – the rest (more than 75%) is wholly owned by you – and that create confidence in our homes’ intrinsic value and the market’s future.
Meanwhile August has started with a bang here in Melbourne with an auction clearance rate of 78.6% based on more than 1,000 auctions; up from 78.2% and 787 auctions last week.
Call us today for an obligation-free chat about your property’s value and its buyer appeal.