20+ Wild Facts About Australia’s Hot Property Market

Australians may be the richest people in the world, thanks to the value of our homes. It's staggering to read how 2021 looks on paper.

Residz Team 3 min read

Real estate is a national obsession for Australians. You can see why.

Headlines shout the property market saw “record this” and “all-time high” that. If Westpac’s prediction of a rate hike by the RBA later in 2022 proves correct we can expect such headlines to taper off. So, as real estate is Australia’s favourite sport, let’s look at the wild facts and trends in the property market right now.

Last year Credit Suisse announced Australians were the richest people in the world. One in 10 Australian adults was now a millionaire in US dollars, it said, and it’s got a lot to do with the country’s median house price climbing over $1 million for the first time.

Property is the largest store of wealth in Australia. The total value of dwelling stock passed $10 trillion in December, 2021.

Boy, did we splash out. The most expensive house ever sold at auction, a Toorak mansion, went under the hammer for around $40 million in 2021. The Mercury reports Tasmania’s most expensive home sale ever was achieved in 2021: An $8 million off-the-plan penthouse in St David, 9 Sandy Bay Rd., Hobart (pictured).

Last year two homes in Brisbane shared the record highest price ever achieved ($15 million) in that market.

Property is now worth 4 times as much as the sharemarket, and 3 times as much as Australians’ superannuation holdings.

The total value of dwellings essentially doubled in the past 7 years. Westpac reports much of that value came from a million new homes being built and many more being renovated.

There were the highest number of annual sales on record. While many buyers missed out, more than 650,000 houses and units were sold to the luckier ones.

Total number of home sales in 2021 was 40% higher than the decade average.

Australia recorded its busiest ever month for auctions, in December 2021.

Despite interest rate jitters house prices are still rising. Late last year CoreLogic’s research director reported housing values were rising at the fastest annual pace since 1989.

NSW and Victoria have been the most active markets for property investors, although other states are catching up.

Demand for investor mortgages hit an all-time high late in 2021. ABS data shows the value of new loan commitments to investors rose 3.8 per cent reaching a new all-time high of $10.1 billion.

Happily for investors (not at all so for tenants) Domain’s rental report shows rents are rising at record levels in many city markets.

House rents are at record high levels in Sydney, now averaging $600 per week.

House rents are at record high levels in Melbourne, now averaging $445 per week.

House rents are at record high levels in Brisbane, now averaging $480 per week, and this has been the longest period of continuous house rent growth in Brisbane’s history. Unit rents are at record highs in Brisbane of $420 per week.

House rents are at record highs in Adelaide, now averaging $450 per week.Unit rents are at record highs in Adelaide, now at $360 per week.

Canberra is Australia’s most expensive city for rentals. House rents at record highs in Canberra, now averaging $675 per week. Unit rents are at record highs in Canberra, now averaging $530 per week.

However, Canberra’s house gross rental yields are the weakest ever to be recorded for the city.

Perth is the highest gross rental yielding capital city for houses. Rents are at a 7 year high of $460.

House rents are at record highs in Hobart, now at $500 per week. Unit rents are at record highs in Hobart, now at $428 per week.

CommSec’s State of the States report released in January 2022 shows Tasmania is Australia’s best performing economy among the states. It is the strongest on:

Western Australia leads the states on best performing relative economic growth. Western Australia recorded the fastest nominal economic growth, up 21.8 per cent over the year, supported by strong mining output.

Queensland has the strongest relative population growth.

Victoria had the most construction work done in 2021.

And if you think all of the above is interesting, have a think about this. Many Australian homes are now worth more than the Welcome Stranger, the world’s largest alluvial gold nugget, found in Victoria in 1869. The prospectors were paid about $4 million (in today’s money) for the 70 kg gold nugget. That’s now the median price of a house in 465 suburbs.  

Image: Moda/St.David