Australian home owners with a mortgage, on average, hold a great deal of wealth in their residential property. 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). This free report reveals which council areas around Australia have the highest and lowest home equity in the country.

Highlights from our Housing Equity Report

  • The average Australian property has 48.4% of equity so it’s worth close to double the amount of debt held against it
  • Sydney has the highest equity levels at an average of 60.1% or $444,000, with Hunters Hill council topping the nation
  • Melbourne’s Boroondara council has Victoria’s highest average equity rates at 66.3% or $768,000
  • The lowest home equity can be found around Queensland’s regional areas
  • South Australia and Western Australia have average home equity levels of 39.4% and 38.5% respectively

Australian homes prove to be a major wealth generator

The report shows that home owners with an Aussie panel mortgage in either city or regional areas, have on average, accumulated 48.4 per cent equity in their properties, equating to $242,642.

A price surge in the NSW property market over the last three years has seen the state come out on top, with the average property owner now holding equity of 56.6 per cent worth $358,763. Tasmanian home owners have the lowest equity in their homes, but at a still healthy 32.7 per cent worth $95,427.

Home equity levels vary across Australia depending on the historic pace of capital gains and the rate at which property owners have paid down their debt. The fast growing Sydney (60.1 per cent) and Melbourne (50.7 per cent) dominate the top two capital city spots as property prices have risen by a compounding rate of 8.3 per cent and 7.8 per cent respectively over the last 20 years, clearly outpacing the growth in mortgage levels.

Meanwhile the lower, but still healthy, equity level of Perth properties (39 per cent) arguably reflect a shorter period of ownership in that city of 9.1 years and the weakness in the state’s mining sector which has placed some downwards pressure on housing market conditions over the past year.