Australian household wealth increased to $17.3 trillion in the March 2025 quarter, rising by $137.1 billion, according to the latest data from the Australian Bureau of Statistics (ABS).
The 0.8 per cent lift was primarily driven by higher property values, particularly in residential land and dwellings.
House prices continue steady growth
Residential property values rose 1.2 per cent over the quarter, contributing approximately $125.3 billion to the national balance sheet.
House prices increased by 0.7 per cent, marking eight consecutive quarters of growth.
However, annual growth slowed to 4.2 per cent, down from 8.0 per cent a year earlier in March 2024.
Borrowing limits overall gains
Household borrowing rose by 1.4 per cent ($42.4 billion), which offset 0.2 percentage points from the overall wealth increase.
Broader demand for credit totalled $136.1 billion, the highest quarterly figure since June 2022.
This included $35.9 billion from households, $45.9 billion from private non-financial corporations, and $37.0 billion from the federal government.
The rise in government credit demand followed a $24.4 billion debt repayment in the December quarter, with new bonds issued in anticipation of future expenditure.
Mixed outcomes in household savings and superannuation
Household deposits increased 1.7 per cent ($29.5 billion), adding 0.3 percentage points to net wealth.
However, superannuation assets declined by 0.4 per cent ($16.4 billion), the first quarterly drop since September 2022, reducing the overall figure by 0.1 percentage point.
The decline was attributed to weaker performance in domestic and international equity markets.
Interest rate relief begins to flow
ABS head of finance statistics Dr Mish Tan noted that the Reserve Bank of Australia’s cash rate cut in February, the first easing since November 2020, offered some breathing room for household budgets through lower mortgage repayments.
Another cut in May is expected to have a more visible impact on property and credit markets in the coming quarters.
“Household superannuation balances fell as global uncertainty weighed on share prices,” Dr Tan said.
“We expect to see the broader effects of rate cuts on both house prices and credit later this year.”
As property continues to influence Australia’s financial landscape, the coming months will test the durability of household wealth in an environment still shaped by economic caution and gradual policy adjustments.
