WeSearch

Why our $12 trillion obsession with property could be under threat

Marc Jocum· ·4 min read · 0 reactions · 0 comments · 1 view
Why our $12 trillion obsession with property could be under threat

With interest rates likely to continue rising in 2026, Australian households may want to consider lowering their huge exposures to property.

Original article
The Sydney Morning Herald · Marc Jocum
Read full at The Sydney Morning Herald →
Full article excerpt tap to expand

{"@context":"https://schema.org","@type":"NewsArticle","dateModified":"2026-04-28T06:00:00Z","datePublished":"2026-04-28T06:00:00Z","description":"With interest rates likely to continue rising in 2026, Australian households may want to consider lowering their huge exposures to property.","headline":"Why our $12 trillion obsession with property could be under threat","keywords":"Active investing, Just in, Analysis","author":[{"@type":"Person","name":"Marc Jocum"}],"mainEntityOfPage":{"@id":"https://www.smh.com.au/money/saving/why-our-12-trillion-obsession-with-property-could-be-under-threat-20260421-p5zpoz.html","@type":"WebPage"},"image":{"@type":"ImageObject","height":"1322.6666666666665","url":"https://static.ffx.io/images/$zoom_0.3429%2C$multiply_0.7025%2C$ratio_1.777778%2C$width_1059%2C$x_630%2C$y_68/t_crop_custom/q_86%2Cf_auto/ab39bbdeaff38cd0d0132bc007976b9b43c789bd","width":"744"},"isAccessibleForFree":false,"hasPart":[{"@type":"WebPageElement","isAccessibleForFree":false,"cssSelector":".paywall"}],"publisher":{"@type":"NewsMediaOrganization","name":"The Sydney Morning Herald","logo":{"@type":"ImageObject","height":"628","url":"https://www.smh.com.au/metro-assets/assets/static/smh.png","width":"1200"},"url":"https://www.smh.com.au"},"isPartOf":{"@type":["CreativeWork","Product"],"name":"The Sydney Morning Herald","productID":"smh.com.au:webonly"}}{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","item":{"@id":"https://www.smh.com.au/money","name":"Money"},"position":1},{"@type":"ListItem","item":{"@id":"https://www.smh.com.au/money/saving","name":"Saving"},"position":2},{"@type":"ListItem","item":{"@id":"https://www.smh.com.au/topic/active-investing-1n5t","name":"Active investing"},"position":3}]}AdvertisementAnalysisMoneySavingActive investingWhy our $12 trillion obsession with property could be under threatMarc JocumApril 28, 2026 — 4:00pmSaveYou have reached your maximum number of saved items.Remove items from your saved list to add more.ShareAAAAustralian household wealth hit a record high in the December quarter of 2025 and outpaced gains in share markets. While we are richer than ever, according to the Australian Bureau of Statistics’ balance sheet, Australians may need to recess their high allocations to property over the coming year given rising interest rate and a potential slowdown in real estate prices.Household wealth hit a record $18.85 trillion in the December 2025 quarter, according to data from the Australian Bureau of Statistics. That was boosted by rising property values, with households holding a whopping $12.53 trillion in real estate assets, up 3 per cent from the September 2025 quarter.Australia’s love for property investment could be under threat.Peter RaeThe total value of dwellings Australians held surpassed $12 trillion for the first time as property prices jumped, with the national mean dwelling price increased 2.7 per cent to $1.07 million over the December quarter, according to the ABS.While the dollar level of share ownership rose over 2025, the proportion of household wealth invested in shares has dropped in the last two decades. Direct shareholdings accounted for just 9 per cent of household wealth, a proportion which has diminished recently as property values have surged.AdvertisementThat has dropped from around 13 per cent in December 2005. In contrast, this ABS data clearly shows that a big chunk of the nation’s household wealth, or around 66 per…

This excerpt is published under fair use for community discussion. Read the full article at The Sydney Morning Herald.

Anonymous · no account needed
Share 𝕏 Facebook Reddit LinkedIn Email

Discussion

0 comments

More from The Sydney Morning Herald