Australian dwellings have been valued at just over $6 trillion after July figures showed another rise.
The monthly CoreLogic RP Data Home Value Index rose 2.8 per cent in July, to be 11.1 per cent higher over the past year.
Melbourne tipped Sydney off its plinth for the highest rate of capital gain, with dwelling values in Melbourne 6.1 per cent higher over the three months. Growth in Sydney wasn’t quite as strong at 5.4 per cent over the rolling quarter.
According to Tim Lawless, CoreLogic RP Data’s head of research, the total aggregated value of Australian housing has increased by just over half a trillion dollars over the past twelve months.
“In July 2015 our estimates have now reached $6 trillion as a result of value growth and dwelling construction”, Lawless said.
“Based on APRA data through to March, approximately $1.3 trillion of bank debt remains outstanding against the asset class. Taking into account housing debt from the non-bank sector as well suggests that the overall debt to valuation ratio across the national housing portfolio is likely to be around the mid-20 per cent mark."
"To date, the capital cities have seen remarkable differences over the growth cycle which broadly commenced at the end of May 2012 and since that time dwelling values across our combined capitals index have increased by 30.4 per cent. Sydney values are 47.9 per cent higher over the current cycle and Melbourne values are 32.1 per cent higher while every other capital city has seen growth of less than 13 per cent over the same period.
"Over the past twelve months, we’ve seen several cities enter a correction phase with Darwin values falling the most, down by 5.3 per cent. Perth values also drifted lower over the year, down 0.3 per cent”, Lawless concluded.
The strongest growth conditions outside of Sydney and Melbourne have been in Brisbane, where dwelling values were 3.9 per cent higher over the year.