Nine trillion dollars. Can you imagine $9 trillion?
That’s what the Australian property market is estimated to hit by the end of 2021.
$9,000,000,000,000!
Australia’s property market reached $8 trillion in March 2021, and it’s only increasing, with new reports predicting it will hit $9 trillion!
According to researchers, the property market has been steadily growing despite lockdowns and the lack of international buyers. These record-breaking property values are the result of skyrocketing house prices and the government-supported construction boom.
According to recent data collected by CoreLogic, residential real estate is worth $8.8 trillion dollars. This comes as the result of a spike that increased property prices by 20% in some Australian capital cities in the past year. For example, Sydney prices rose by 12%, or $140,000, from March 2020 to March 2021 with the median price reaching more than $1.3 million.
Interesting facts
CoreLogic’s data produced some interesting facts. The residential property market is currently worth more than the combined total of:
- Australian superannuation ($3.1 trillion)
- Australian stock market ($2.8 trillion)
- Commercial real estate ($978 billion)
Unfortunately, the data also discovered that more than half of household wealth is consumed in housing, with $1.9 trillion in outstanding mortgage debt.
CoreLogic recorded that nearly 600,000 residential properties have been sold since January 2021. These are the highest levels seen since 2008.
Interest Rates Remain Low
Even though prices are on the rise, the good news is that interest rates remain low. Here’s the truth: banks are ready to loan money! What does this mean for you? Interest rates on home loans are lower than they have been in years, but nobody can say for sure how long these great interest rates are going to be available. Housing may even be more affordable than ever due to the extremely low interest rates. The good news is that the RBA has stated they plan to keep interest rates at the record low of 0.1% until at least 2024. Though, if the economy bounces back even faster than analysts predict, meaning Australia’s unemployment rate is below 4.5%, then the interest rate would be subject to increase. So, what does this mean for you? If you’re ready to get started on your investment property journey, now is the perfect time. With interest rates at record lows, and the market predicted to reach or surpass $9 trillion, this makes it the ideal time to jump in before prices inflate. Ready to create a property investment strategy that’s perfect for your goals?We Can Help
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