Rising home prices lift official wealth measure

Higher market values for homes and businesses pushed up the average Australian's wealth again last year. Net private sector wealth grew by 7.9 per cent in the year to June 30th 2001 to $3,431 billion, or five times the GDP, according to Treasury figures.

After allowing for inflation, the rise in net private sector wealth was only 2.8 per cent and the wealth of the average Australian increased slightly by 1.6 per cent to $167,068 from $164,459.

The main factor contributing to the growth in private sector wealth was the market value of residential home assets, which contributed 5.7 percentage points, up from the long-term average of 5.5 percentage points. Dwelling assets made up 57 per cent of net private sector wealth, with business assets accounting for 34 per cent, the Treasury said.