Victorian residential property breaks $1 trillion mark

by Mackenzie McCarty15 Jan 2013

The combined value of Victoria’s 2.3 million residential properties has reached $1.083 trillion – marking the first time the trillion dollar mark has been passed in the state.

Property is a significant part of the Victorian economy and holds a large portion of the state’s overall wealth.

Victorian Valuer General, which documents the total value of residential property in the state every two years, says the new figure represents an 11% increase on the $978 billion recorded in 2010.

REIV says the value is ‘significantly higher’ than the value of all sales each year, as only 4 to 5% of all homes are sold annualy.

“The residential sector had the highest combined value all the types of property in Victoria which is a factor of the critical role housing plays.”

Commercial property had the second highest value, with the 147,000 properties recording a combined value of $148 billion.  Their value increased by 9% over the two year period.

Property in rural areas came third, with a combined value of $97 billion following a 12% increase since 2010.

“The segment with the least value was the 72,000 industrial properties whose total value increased by 7% to $62 billion. This is not a reflection of the value of the sector to the state’s economy; rather it is reflection on the location of most industrial zoned properties and the fact that industrial property has a lower underlying value than does residential and commercial.”