Australia’s household wealth climbed 0.8% ($137.1 billion) in Q1 2025, driven almost entirely by a $125.3 billion surge in residential land and dwelling values, according to the Australian Bureau of Statistics.
This marks the eighth straight quarter of house price gains, though annual growth has cooled to 4.2%, down from 8.0% a year earlier.
Despite the property boom, warning signs are flashing.
Household borrowing jumped 1.4% ($42.4 billion), shaving 0.2 percentage points off net wealth growth.
Meanwhile, superannuation balances fell 0.4% ($16.4 billion) — the first drop since Q3 2022.
The ABS attributes this to weak equity markets; MSN adds that United States tariff threats have contributed to investor anxiety.
The Reserve Bank’s February and May rate cuts offered some mortgage relief, with household deposits rising 1.7% ($29.5 billion).
But with geopolitical risks and equity volatility still in play, investors should watch for credit expansion and asset repricing in the second half of 2025.
