Australian Household Wealth Reaches New Heights, Driven by Rising Asset Values

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Household wealth in Australia continues to soar, reaching unprecedented levels in the December quarter of 2023.

According to the latest figures released by the Australian Bureau of Statistics (ABS), household wealth rose for the fifth consecutive quarter, surging by 2.

With a total household wealth of $15.

December quarter, the figure represents a remarkable 7.

The primary driver of this growth was the surge in residential land and dwellings, contributing 1.

Dr Mish Tan, the ABS head of finance statistics, attributed the substantial boost in household wealth to the continuous rise in asset values.

The housing market continued its significant growth, while both domestic and overseas share markets experienced considerable gains.

The growth in the share market also had a positive impact on superannuation assets, which increased by 3.

Furthermore, households’ direct ownership of shares and other equity rose by 3.

These combined factors contributed 1.

In addition to the remarkable rise in household wealth, the December quarter also witnessed the strongest demand for credit since the September quarter of 2022, totaling $105.

This surge in credit demand was primarily driven by households, private non-financial businesses, the Commonwealth Government, and state and local general government.

Dr Tan noted that household borrowing reflected the ongoing demand for housing, fueled by robust population growth.

The December quarter also saw a seasonal boost from the spring housing market sales, further driving household borrowing.

Moreover, Treasury bonds issued during the quarter played a vital role in funding the Commonwealth Government’s investment in infrastructure and other policy priorities.

The ABS’s latest report paints a picture of a resilient and prosperous Australian economy, with household wealth reaching new heights.

However, experts caution that sustaining this growth in the long term may require careful monitoring and consideration of various factors, such as housing affordability and market stability.

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