Residential real estate is Australia’s largest asset class with a total value of $5.4 trillion as at December 2014. Over the past few decades, Australia’s home ownership rate has remained fairly stable at around 70% and during the last 20 years, investor activity has increased. This is in part because of the historical growth profile and relative stability of residential real estate as an asset class.
The Australian residential mortgage market demonstrates consistent strong growth with CAGR of [12.5%] in the total value of loans outstanding since 1990. The market was not immune to the impacts of the GFC, however, it has recovered strongly in recent years and, as at February 2015, total residential mortgage loans in Australia were $1.44 trillion, up 7.1% on the previous 12 months. The Compound Average Growth Rate has been 5.7% since 2010.
Source: RBA D6 Lending Commitments – All Lenders, RBA D2 Lending and Credit Aggregates