Australian financial assets down 3.6%

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Average Australian financial assets have shrunk 3.6% year-to-date, equivalent to an average loss of $69,030 per household in mid-June.

Digital financial advisory platform Otivo and Digital Financial Analytics assessed the losses of more than 52,000 households resulting from market investments such as stocks and bonds, statutory pensions, SMSFs, properties occupied by the owner and investments, deposits and crypto.

Of all these asset classes, statutory retirement suffered the largest depreciation of 7.3% so far this year, more than three times the 2.4% decline reported for SMSFs.

During a tough time for local and global markets, equities were the second biggest loser with a 5.4% drop, followed by a 4.7% decline for crypto investments.

Investment properties (-2.6%) fell more than owner-occupied properties (-1.6%) over the period, while deposits saw the smallest drop of 1.5%.

Overall, residents of the ACT (-5.3%), NSW (-4.6%) and Victoria (-4.6%) suffered the largest losses to date.

In contrast, residents of the Northern Territory (-3.2%), Tasmania (-2.8%), Queensland (-2.4%), South Australia (-2.3%) and Western Australia (-2.2%) fared better.

The performance gap between the two groups can be at least partially attributable to how housing markets have behaved differently in each state and territory this year.

Declines for owner-occupied properties were seen in New South Wales (-4.1%), Victoria (-4.1%) and the ACT (-4.0%) compared to gains in Queensland (1.8%) and in South Australia (1.8%) and Western Australia (1.7%).

According to Otivo and Digital Financial Analytics, the suburbs hardest hit by asset losses are Sunshine (-9.6%), Brunswick West (-8.8%) and Altona North (-8.6%) in Victoria .

Significant losses were also reported for the NSW suburbs of Chatswood (-7.8%), Stanmore (-7.7%), Willoughby (-7.7%), Petersham (-7.6%) and Haberfield ( -7.5%).

Last week, the Australian Bureau of Statistics reported that total household wealth hit a record $14.9 trillion on the back of continued strength in the housing market.

However, this data covered the March quarter before the recent stock market volatility and before national house prices fell.

Australian financial assets down 3.6%

Superannuation is the asset class with the biggest loss so far in 2022.

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Last update: June 24, 2022

Posted: June 27, 2022

Jon Bragg

Jon Bragg

Jon Bragg is a reporter for Investor Daily from Momentum Media, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.

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