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Summary
- Total household wealth surged by 1.7 per cent to a record high of A$11,351 billion, the data released by Australian Bureau of Statistics (ABS) showed.
- While residential assets grew by 1.2 per cent, deposits and superannuation balances increased by 5.4 per cent and 1.1 per cent, respectively in the September quarter.
- Credit demand via markets and financial intermediaries touched a record A$154.9 billion.
Uptick in residential assets, deposits and superannuation balances pushed household wealth growth to record high in the September quarter. Total household wealth surged by 1.7 per cent to a record high of A$11,351 billion, according to the data released by Australian Bureau of Statistics (ABS) on Thursday, 17 December 2020. The previous high of A$11,248 billion was seen in the December quarter 2019, prior to the coronavirus pandemic.
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While residential assets grew by 1.2 per cent, deposits and superannuation balances increased by 5.4 per cent and 1.1 per cent, respectively in the given period. The average household wealth grew by 1.6 per cent or A$6,850 to $441,649 per person in the September quarter, as against a rise of 1.5 per cent in the June quarter. A rise of 0.1 per cent in the Australian population was the main contributor behind the total wealth rising marginally more than average wealth, ABS data showed.
Improvement in financial markets
Head of Finance and Wealth at the ABS, Amanda Seneviratne, said that the latest data for household wealth indicated an improvement in the financial markets of Australia and the world. It also reflects that the domestic economy has seen particle recovery as a result of the policies introduced by the government and Reserve Bank of Australia (RBA), Seneviratne added.
READ MORE: ABS data revealed surge in International trade and housing loan commitments
Rebound in property prices
The data also shows that the residential assets grew A$86.8 billion in the September quarter, recovering the losses posted in the June quarter. The figures also gave reflection of a recovery in property prices considering holding gains of A$73.6 billion on residential assets. Ease in social distancing measures and improvement in economic scenario have supported the recovery.
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Savings lift household deposits
The government income support packages, economic support payments, and early access to superannuation were the major contributors in rise in deposits. Tax refunds in the September quarter also helped. In the period under review, the household deposits surged a record A$63.7 billion.
READ MORE: Australian economy expands 3.3% in September quarter, bounces out of recession. | AUS |
Credit demand on rise
Credit demand via markets and financial intermediaries touched a record A$154.9 billion. Significant amount of capital was raised by both Commonwealth and state governments so as to fund coronavirus policies for the given quarter and beyond. As a result, net borrowing rose by A$21.4 billion to A$118.0 billion.
