Booms and busts have been an important part of our lives. On top of that, purchasing a home is a dream of many! At present, Australia is observing a boom in the nation’s property market. Are you currently on the property investment side? Or are you hunting for a home for yourself? Before making a decision, learn about the house prices in Australia.
In Australia, the real estate market is surging (more than usual) with the highest gain in prices in 17 years, dismissing the COVID downswing threat. On that note, worries have poured over Aussies due to a stockpile of debt! Although stepping on the ladder of investment in real estate for young people has become tough, you can still get cracking. Wondering how? Use equity to purchase an investment property. By rolling over your equity, you can save up for a deposit and secure your property.
Coming back to the point, economists forecast an 18-22% rise in house prices by the end of the year. Having said that, a gradual decrease in rising can ease things. If bifurcated more, Sydney can expect 27% gains, Hobart 25%, while Brisbane 22%.
The gains of the buyers would be immense with the blend of record-making low-interest rates and government incentives (the biggest gain!). And in the coming years, the rates are expected to below. All you have to look at is lenders’ mortgage insurance because security always holds the top position.
However, post-COVID thunderstorms, people are fixing their gaze on purchasing larger houses with space to work from home. Additionally, a real estate agent Ben Collier reported a significant surge in demand across all suburbs and price ranges. Not only do the low-interest rates and government incentives contribute to this high demand, but affordability is also playing a key role. The wages of Australians have risen at an average of 1.7%. However, the property prices have surged almost 11 times than wages.
Let’s dive into the numbers!
The house prices rise in capital cities for June quarter 2021:
- Canberra – This city has seen the largest quarterly rise (by 8.2%+) among the series since 2003’s September quarter
- Sydney – The city has observed the second-highest rise (by 8.1%+) since the 2015’s June quarter
- Hobart – The city has found its place at the third position for the largest quarterly rise (by 6.3%) since 2003’s December quarter
- Melbourne – This city managed to grab the fourth position for the largest quarterly rise (by 6.1%+) since 2009’s December quarter
- Brisbane – The city got the fifth position for the largest quarterly rise (by 5.7%+) since the 2007’s June quarter
- Adelaide – This city is at the sixth position for the largest quarterly rise (by 5.3%+) since the 2007’s December quarter
In fact, combined capital cities have observed a 7.7% house rise, whereas attached houses increased by 4.3%.
Having said that, the number of properties for sale is not meeting the demands. On that note, buyers are facing a shortage of options in regional locations, with total listings lower (nearly 40%) than last year.
Well, did you miss hearing the great news about the real estate of Australia?
In the internationally recognised GRESB Real Estate Assessment ranking for 2021, Australia’s real estate sector has topped the first position in sustainability – once again! All thanks to the property companies who’ve seized the top spot for the 11th consecutive year. Their efforts and innovations for meeting the goals of climate change are highly applauded!
So, if you’re looking for signs of a good investment property, then remember to check its sustainability. Australia needs to become a climate-positive continent!
Last but not least, although markets are moving on, not all properties will surge. Also, consulting property advisors will come in handy. So, wait no longer and take advantage of these low-rate interest rates.
Hello everyone, I am Ariana Mortenson, a professional writer and blogger. I write on various niches in a way that it’s understandable and appealing to the people. I aim to achieve a difference through my writing which allows you to make informed and valuable choices. Follow me back on Twitter, LinkedIn and Pinterest.