Australian housing has been on the rise for the past years. With the strong demand for property, it is inevitable that house prices catch up. The median price of houses across Australia now stands at $575,000, with Sydney being the most expensive at $775,000, and Hobart as the least at $350,000. The median price has steadily increased, and for 2013 it rose by 9.8% from the previous year.
Cameron Kusher, Senior Research Analyst at RP Data has 7 telltale reasons why Australian Housing is expensive. He points out that Australians are high earners compared to other countries. More than half of the nation’s population is centralized on key cities: Sydney, Melbourne, Brisbane and Perth, mainly because employment opportunities are high in these cities.
Housing supply and demand is a decade old problem with the steady rise in population; more people are getting into property investments. But due to urban growth restrictions, residential land scarcity, this drives up cost for vacant land. With Negative gearing adding to the list, more people are encouraged to investment, adding to the demand in the housing sector.
Does this mean that Australian housing is unaffordable for First Home Buyers? The answer is a resounding NO. In fact, in an upcoming release by RP data, it shows that almost one in five homes have a value under $400,000. In 2013, 28.4% of all homes have a value of less than $400,000.
Read more about the author’s first home buying experience and more on the Property Observer website.
Latest posts by Dorian Traill (see all)
- Brisbane Slow And Steady Growth Ideal For Investors - November 5, 2015
- 5 Wellness Tips in the Workplace - October 26, 2015
- Sydney Median Soars to $1 Million - September 24, 2015