The value of Australia’s housing stock increased by more than the GDP of entire countries in just three months, and is now worth $12.3 trillion – roughly the equivalent of the combined value of Japan, India and the UK.

The Australian Bureau of Statistics (ABS) has revealed that the value of the nations dwellings rose by $384.8 billion, or 3.2 per cent in the December quarter, which is more than the entire GDP (gross domestic profit) of countries such as Iran, the Czech Republic and Egypt.

At $12.3 trillion, Australia’s bricks and mortar real estate is now worth more than the combined GDP of Japan ($4.28 trillion), India ($4.13 trillion) and the UK ($3.96 trillion).

Fun fact, with $12.3 trillion to spend you could also buy roughly 56 International Space Stations.

Australia’s dwelling value is now roughly four times the GDP of the UK. Photo – iStock

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ABS head of finance statistics Dr Mish Tan said that after 13 quarters of uninterrupted growth since September 2022, the total value of dwellings had surpassed $12 trillion for the first time. “December quarter’s growth was driven by rising property prices, as the national mean dwelling price increased 2.7 percent to $1.07 million,” Dr Tan said.

Annual growth in mean price of dwellings to December quarter – ABS

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The mean price of residential dwellings rose in all states and territories during the December quarter, with growth most evident in Western Australia (7.5 per cent or $70,500), Queensland (4.8 per cent or $48,800) and South Australia (4.5 per cent or $40,800).

“Annually, dwelling prices in Western Australia have risen faster than any other state or territory, rising 16.8 per cent to$1.01 million since December quarter 2024,” Dr Tan said.

“This quarter, Western Australia became the third state after New South Wales and Queensland to have a mean dwelling price of over $1 million.”

ABS

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It comes after the latest PropTrack Home Price Index revealed that prices lifted across every capital city in February, while nationally values are now 9.1 per cent higher than a year ago. The national increase marks the fastest annual pace of growth since June 2022 with the strongest conditions remain concentrated in markets where buyer demand is facing into tight supply, particularly Perth, Darwin, Brisbane and Adelaide.

The Brisbane market is bonkers.

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Buyers Collective buyer’s agent Jack Freestone said Brisbane homebuyers were facing extraordinary competition, with some properties attracting more than 30 written offers – a sign of just how tight the city’s housing market has become.

He said that most properties his team had competed on so far this year had received between 12 and 15 written offers.

In one case, a single property drew 31.

“At minimum, I would say we’re seeing six to eight offers, but most commonly we’re sitting around 12 to 15,” Mr Freestone said.

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This Brisbane hoarders house recently sold at auction for $1.285 million – more than the city’s median house price

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In a normal market, Mr Freestone would expect between one and three offers per property.

The primary driver, he said, was a severe shortage of supply, with total listings across the city sitting 25.9 per cent lower than the same time last year with demand from local, interstate and international buyers remaining strong.

“The sub-$1 million space is by far the most competitive,” he said.

“That’s where we’re seeing the biggest volume of buyers and the most aggressive competition.”

Going forward, Mr Freestone expects conditions to remain tight through 2026 and into 2027 unless there is a significant increase in housing supply.