The ABS released its latest Finance & Wealth figures for Q2 2015 this week which showed household net worth surging to above $8.4 trillion in the June quarter. A major of driver of net gains over the three months to June was an explosion in Sydney dwelling prices (+8.9 per cent), with the total value of land & dwelling stock in NSW rising by a thunderous +$193 billion. The decline in household gearing ratios (debt to total assets) over the past three years is largely reflective of rising equities markets - until the 2015 calendar year at least - as well as gains in dwelling prices in Sydney and Melbourne. Other drivers of easing household gearing ratios have included growing aggregate mortgage buffers as households opt to allow mortgage debt to pay down in the prevailing low interest rate environment, and a surge in foreign investment in Australia. (VIEW LINK)



Comments

Please sign in to comment on this wire.

James Marlay

Interesting read Pete