1300 13 22 77Homeowners Pocket $230K in 5 Years
New data shows home values nationally have climbed 39% in just five years. It goes to show what an exceptional investment – and wealth builder – your home can be.
It sounds too good to be true: A tax-free asset that has notched up capital gains of 39% in just five years, boosting personal wealth by an extra $230,000.
But that’s exactly what our homes are all about. And if you think that’s good, just wait till you see how home values have risen in the past.
5-year gains approaching 80%
According to CoreLogic, the 39% growth in home values seen over the past five years reflects strong underlying housing demand, tight supply and a relatively resilient economy1.
But today’s growth cycle is relatively moderate compared to earlier periods.
As a guide, home values nationally jumped an impressive 75.5% over the five years to March 1989, and a record 79.7% in the five years to December 2003. What’s interesting is that different housing markets have experienced their own peak growth periods at different times.
These are shown in the chart below.
Peak 5 year growth in dwelling values, capital cities.
Source: CoreLogic2
As a guide, the late 1980s were a peak period for property markets across Sydney and Melbourne.
On the other side of Australia, the five years to September 2006 were memorable for Perth property owners, who notched up gains of 137.8%.
It goes to show how Australia is made up of a variety of property markets, each moving to its own individual beat.
The common thread is the potential to earn long term gains on your home.
Home ownership drives wealth
One thing is for sure. Owning residential real estate can be a key driver of personal wealth.
Recent ABS data3 shows total household wealth was $17.0 trillion in the December 2024 quarter, which was $1.0 trillion higher than the same period the year before. The bulk of this wealth came from home ownership, with the ABS saying the value of residential land and dwellings rose $24.6 billion during the December quarter alone.
Your home loan helps builds equity
Of course, most of us need a home loan to get into the property market. But that’s okay.
Given the long term rise in home values, our mortgage can play a key role in building some “equity” – the difference between your home’s current market value and the remaining balance on your loan.
And it sees home owners rewarded with higher personal wealth as the value of their place rises, and the balance of their home loan is whittled away over time.
The moral of the story
Sure, there can be times when paying off a home loan can seem like hard work. But the rewards are there.
Owning your home doesn’t just offer the certainty of a roof over your head. It can also form the foundation of personal wealth. It’s a great reason to never give up on the dream of owning a place of your own.
Start your property journey
To learn more about the options we offer to help get into a place of your own, call us on 1300 13 22 77, Mon-Fri 8am-8pm (AEST/AEDT) or 8am-3pm on Saturdays. Or pop in and speak to the friendly team at any of our stores.
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1https://www.corelogic.com.au/news-research/news/2025/national-home-values-climb-over-39-in-the-past-five-years,-but-still-fall-short-of-early-2000s-boom2https://www.corelogic.com.au/news-research/news/2025/national-home-values-climb-over-39-in-the-past-five-years,-but-still-fall-short-of-early-2000s-boom
3https://www.abs.gov.au/media-centre/media-releases/household-wealth-09-december-quarter