Australian households have never been wealthier.
According to data released by the Australian Bureau of Statistics (ABS) on Thursday, net household wealth rose by $197.6 billion, or 2.2%, to $9.062 trillion in the September quarter of this year, the highest level on record.
Net household wealth is the value of household assets minus liabilities.
Commsec’s economic team calculates that in per capita terms, that equates to a net worth of $374,333 per household, up $6,941 over the quarter.
Yes, while the economy may have gone backwards, household wealth went in the other direction.
“Household assets (2.0%) outgrew liabilities (0.9%) during September quarter 2016, resulting in a 2.2% quarterly growth in household net worth,” said the ABS.
Total land and dwelling assets stood at $6.14 trillion while financial assets were valued at $4.57 trillion. In comparison, household liabilities totaled $2.27 trillion.
And, unsurprisingly, Australia’s rip-roaring east coast property market was the primary reason for the increase.
The ABS said that the value of household residential land and dwellings grew by 1.9%, or a massive $106.9 billion, over the quarter.
This chart from the ABS shows the collective balance sheet of Australian households at September 30.
Household liabilities as a percentage of total assets currently stands at 20%.