Falling real estate prices, caused by slowing housing and the weakening of the Australian dollar, resulted in a decline in average wealth per adult in Australia, according to a report by Credit Suisse Research Institute.
In the past year, average adult wealth has risen from $ 411,060 ($ 598,213) to $ 386,060 ($ 561,831). As a result, Australia lost approximately 124,000 millionaires in US dollars in the past year.
The report also recorded a decline in median wealth in Australia – from 191,453 USD (278,333 USD) to 181,361 USD (263,661 USD).
Andrew McAuley, chief investment officer of Credit Suisse Australia, said real estate prices and the depreciation of the Australian dollar against the US dollar accounted for the drop in median and average wealth.
"The report reveals the large proportion of housing-related wealth, highlighting the importance of real estate conditions for confidence and economic activity," he said in a statement. The Australian Financial Review.
See also: The Truth About Wealth
Non-financial assets, including real estate, account for 58% of gross assets and household wealth in Australia, compared with only 35% in the United States, 39% in Japan and 45% in Switzerland.
"The high level of real assets reflects a large endowment of land and natural resources relative to the population, but also high real estate prices in larger cities," McAuley said.
McAuley said the decline in wealth seemed to indicate that Australians were overexposed to a single class of assets.
"Between 2018 and 2019, the 6% drop in the price of housing in Australia is the only recorded case of a fall of more than 2% among all the nations included in the report," he said. he declares.
Despite the decline in average wealth, the Credit Suisse report indicates that Australia's wealth prospects remain "resilient".
Read also: The prices of real estate to stimulate the population "super-rich"
In fact, two out of three Australians have a wealth of at least $ 100,000, the highest proportion of all countries and about six times the world average.
About 1.3 million Australians worldwide figure in the 1% of wealth holders in the world, said Michael Marr, Head of Private Banking at Credit Suisse.
"While the economic environment since the 2018 report has become more difficult in Australia, with growth lower than the trend of GDP and a weaker real estate market, the growth seen in the markets of the year is still very difficult. Investment has enabled Australia to maintain its still strong position, one of the richest countries in the world, "he told AFR.
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