Property Prices Lift Household Wealth

Household wealth figures are rising, thanks mostly to growing property prices.
According to ABS figures, total household wealth rose by 1.2% to a record $14.9 trillion in the March 2022 Quarter.

Residential property assets contributed 1.4 percentage points to that growth.
ABS head of finance and wealth Katherine Keenan says even though the pace of property price growth has started to moderate in Sydney and Melbourne, increases in other capital cities and regional areas resulted in an overall rise in house prices during the quarter.

The figures show wealth per capita is now a record high of $574,807, which is 0.6% higher than the previous quarter.

Although household wealth has increased, the report found superannuation balances are down by 1.3% as a result of the poor performance of overseas share markets.Keenan says since the start of the pandemic in 2020, appreciating asset prices have boosted household wealth by 35.3%, and residential property accounts for most of this growth.