Household deposits hit record high

John Kavanagh

Household wealth fell for the third consecutive quarter in December, driven by the decline in residential property prices, but household deposits hit a record high.
 
According to the latest Australian Bureau of Statistics household wealth data, wealth fell by 0.4 per cent in the December quarter to an estimated A$14.4 trillion. Year-on-year household wealth is down 3 per cent.
 
The value of residential land and dwellings fell 2.7 per cent in the quarter and 3.9 per cent over 12 months.
 
This fall was partially offset by a 3.6 per cent increase in the value of superannuation assets over the quarter. The value of superannuation assets is down 6.7 per cent over 12 months.
 
Household deposits grew by $32.2 billion to $623.3 billion during the quarter – a record level.
 
The ABS said the rate of growth in household deposits was weaker than in the previous quarter, as a result of higher living expenses.