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aerial view of suburb

Victorian homes are surging in their values, being worth close to twice the value of the debt held against them, according to an exclusive new report by Aussie Home Loans and CoreLogic RP Data called the “Housing Equity Report”.

Equity is simply the difference between the debt held on a property (based on Aussie’s mortgage data), against what the property is currently valued at (according to CoreLogic).

Home equity in Victoria is now the second highest in Australia, at an average of 49.3 per cent equity, equalling $248,875*, with Melbourne suburbs at 50.7 per cent equity, worth $276,845.

Average level of home equity – state by state in percentage and dollar values

Average level of home equity – state by state in percentage and dollar values

Executive Chairman of Aussie, Mr John Symond, said “Victoria is performing strongly for home owners, with Melbourne price growth the standout factor in recent years.

“I believe the best investment both for security and lifestyle is still real estate and I see no reason why this will change over the next decade, especially in view of the lower interest rate climate, lack of housing supply in the major cities and continuing population growth”, he added.

Melbourne is rapidly fulfilling its potential as one of the most liveable cities in Australia, as property prices have risen at a compound rate of 7.8 per cent over the last 20 years.

Boroondara homes have emerged as the top council region of Victoria, with equity of 66.3 per cent or $767,914, followed by Whitehorse (64.9 per cent), Monash (63 per cent) and Manningham (63 per cent).

The lowest levels of home equity were all located in regional areas with Warrnambool being the lowest with an average home equity of 31.1 per cent, preceded by Latrobe (31.6 per cent), Mildura (31.8 per cent) and Greater Shepparton (31.8 per cent).

Top 10 and Bottom 10 council regions in VIC – percentage and dollar values

Mr Tim Lawless, Research Director of CoreLogic RP Data, said “Melbourne properties run a clear second place amongst Australia’s capital cities, with average levels of home equity the highest within those blue chip areas close to the CBD generally performing better as the population becomes more compressed and dwelling values rise”.

Average level of home equity – city by city percentages and dollar values

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