Australian Bureau of Statistics: Victorian real estate worth $2.769 trillion — more than Google

The eye-watering total value of Victoria’s property market has been revealed, and it has the state’s homeowners worth more than the company that owns internet giant Google.

Melbourne home price growth, and an increase in the number of homes in the city as well as across the state have helped raise Victoria property’s net-worth to $2.769 trillion. Picture: NCA NewsWire/Sarah Matray.

The combined value of Victoria’s residential property market reached a jaw-dropping new high in March, with the state’s homes now worth $2.769 trillion.

The monster valuation accounts for a quarter of Australia’s now more than $10.7 trillion property wealth.

It’s also close to twice the nation’s $1.693 trillion gross domestic product, and makes our homes more valuable than Alphabet — the $2.2 trillion parent company of Google and the world’s fourth biggest company.

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The Australian Bureau of Statistics data ranked Victoria second in the nation, behind NSW which had an almost $4.2 trillion combined value.

An almost 16,000-home increase in the number of residences in Victoria meant that even though the state’s average dwelling price – across houses and units – decreased by $1600 to $914,300, the overarching value of the state’s dwellings rose.

Ray White chief economist Nerida Conisbee said one of the more remarkable stats was that Victoria’s net housing wealth had more than doubled from about $1.3 trillion a decade ago in 2014.

Victoria’s economy can be tracked by the success of its housing market, and over the past decade both have done very well.

Ms Conisbee said while real estate agents often spruiked that houses doubled in value every 10 years, this was actually quite rare. And while the growth in the state’s property wealth would suggest it had done so, the economist said it would have been in large part due to rising volumes of homes in the market.

She added that while Victoria’s property sector was going through a bit of a rough patch at present, a rate cut could rapidly change things and drive further growth.

“So it’s possible Victoria will surpass NSW, but it take some time,” Ms Conisbee said.

“But there are a lot of listings piling up in Victoria at the moment, and the taxes put in place are likely to impact investor activity.”

However, she noted that with housing growth often a good sign for an economy, the past 10 years showed that Victoria and Melbourne had performed very well since 2014.

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Originally published as Australian Bureau of Statistics: Victorian real estate worth $2.769 trillion — more than Google