AustraliaÕs risk of negative equity

AustraliaÕs households are among the worldÕs most indebted with more than one in 14 mortgage holders having little or no real equity in their home Ð the value is only equal to or less than the amount they still owe

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A$1 trillion (US$766bn) Household debt is 187% of household income

One in five households would have difficulty meeting mortgage commitments if interest rates rose 0.5% from 4.5% average

Perth

WESTERN AUSTRALIA

A U S T R A L I A

Adelaide

NORTHERN TERRITORY

Darwin

SOUTH AUSTRALIA

Melbourne

TASMANIA

QUEENSLAND

VICTORIA

NEW SOUTH WALES

Brisbane

Canberra

Sydney

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Proportion of mortgage holders with negative equity (Oct 2016)

Average value of home (A$000s)

Sydney $1,100 3.9%      

Tasmania $376 4.7%

New South Wales* $864 5.1%

Victoria* $699 6.0%

Melbourne $795 6.1%

Queensland $540 7.2%

South Australia $466 8.0%

Western Australia $660 10.4%

Total Australia $688 6.9%

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*New South Wales includes Sydney, Victoria includes Melbourne

Sources: Roy Morgan Research, Bloomberg, Digital Finance Analytics 

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