The combined value of Australian residential homes soared to a record $10.7 trillion in the March quarter, according to new data from the Australian Bureau of Statistics.
On Tuesday, the ABS reported that the total value of homes in Australia increased by $209.4 billion in the first quarter of 2024, bringing the median home value to $959,300, an increase of $14,300 in just three months .
Of the total value of residential buildings, $10.3 trillion was owned by households, the ABS said.
Throughout the quarter, all states and territories except Victoria recorded an increase in median home values, with New South Wales recording the highest median home price, $1.2 million.
By contrast, the Northern Territory recorded the lowest median value, $511,400.
In Western Australia, median home values saw the biggest increase, rising 5.4 per cent or $39,200 during the quarter, while the median home in Victoria lost 0.2 per cent or $1,600 of its value.
The number of new homes also increased during the quarter, increasing by 52,700 during the quarter to reach 11.2 million homes.
Total housing value in Australia increased by $209.4 billion in the first quarter of 2024
The median home value is $959,300, an increase of $14,300 in just three months.
The number of new homes also increased throughout the quarter, increasing by 52,700 to reach 11.2 million homes.
However, this figure was far surpassed by a rapid increase in Australia’s population, which increased by 178,600 people during the same period.
To keep the average number of people per household stable at 2.5, Australia’s housing stock would have needed to increase by 71,440 in the March quarter.
A recent anemic run of housing starts and completions had boosted average prices even as the Reserve Bank’s aggressive spate of interest rate hikes and high inflation typically weighed on demand.
The new data also adds to warnings from the construction industry, policy experts and even the government’s independent housing supply council that Labor will miss its target of building 1.2 million well-located homes. in the five years to mid-2029 unless there is a marked increase in new home construction.