Australia’s total household wealth rose by 3.1%, or $551.3 billion, in the September quarter of 2025, driven mainly by higher house prices and stronger superannuation balances, according to new data released by the Australian Bureau of Statistics (ABS).
The ABS reported that the value of residential land and dwellings increased by 2.7%, or $303.7 billion, contributing 1.7 percentage points to overall household wealth growth. Rising property prices were the key factor behind the increase.
“Rising house prices were the main driver of the growth in household wealth this quarter,” said Dr Mish Tan, ABS Head of Finance Statistics. House prices rose 2.2% in the September quarter, marking the strongest quarterly growth since the December quarter of 2023.
Superannuation assets also recorded solid growth, rising 3.7%, or $160.2 billion, and contributing 0.9 percentage points to the overall increase in household wealth. The ABS attributed this to strong performance in both global and domestic share markets for the second consecutive quarter.
“Global and domestic share markets performed strongly, increasing household superannuation balances,” Dr Tan said.
She added that the final superannuation guarantee increase, which took place during the September quarter, also supported higher superannuation balances.
Demand for Credit Increases
The September quarter also saw a notable rise in credit demand. Total demand for credit reached $155.6 billion, an increase of $55.2 billion compared with the previous quarter.
This growth was largely driven by the general government sector, which recorded credit demand of $63.4 billion, and private non-financial businesses, which accounted for $55.1 billion. During the quarter, the Commonwealth government raised $45.3 billion through Treasury bond issuance.
Private non-financial businesses increased borrowing primarily through debt funding of $25.6 billion and equity raising of $29.5 billion, reflecting ongoing investment and financing activity.
Household demand for credit stood at $30.1 billion for the quarter. However, growth in household loan balances was partly offset by government measures to reduce student debt by 20%, according to the ABS.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
