AFR: Value of residential property held by SMSF surged by 17% last year to over $20 billion, statistics show, prompting renewed risk warnings from economists

AFR: Value of residential property held by SMSF surged by 17% last year to over $20 billion, statistics show, prompting renewed risk warnings from economists. Residential property holdings surged in the year to March 2014 to $20.5 billion, up from $17.5 billion a year before and there was a similar 17% rise in commercial property holdings to $68 billion from $58 billion a year ago, according to the new figures. Economists said that while the rise in property investment by SMSF, which triggered a warning by the Reserve Bank and corporate regulator late last year, was small it had encouraged speculative buying. BAML Chief Economist Saul Eslake said the $20.5 billion investment by SMSF in residential property represented just 3.7% of their total assets of $558 billion, and less than 1% of the value of the total stock of housing which was $4.9 billion at end of December 2013.