Property Prices on the Rise in Australia in 2017

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Property Prices on the Rise in Australia in 2017

May 17, 2017

 Planning to sell your house in Australia fast? There have been many complaints about the rising real estate prices in Australia. For most people in the country, the apartment prices in cities such as Sydney and Melbourne are far beyond their capacity to buy.

Consider the facts. In 2017, home in Sydney shot up in value by 1 percent and now fetch a median price of $970,000. Apartments in Sydney have median price of $725,000 for apartments.

Melbourne is not far behind with a 0.8% increase in home prices, with a median price of $711,000 for homes and $510,000 for apartments. Indeed, most cities in Australia have experienced an increase in home prices by about 0.7 percent on an average. The only underperformer was Darwin, where property prices fell by 1.7%.

Tim Lawless, head of research at CoreLogic, said: “The positive result was broad-based with every capital city, excluding Darwin, recording a rise in dwelling values over the month. Clearly the Hobart housing market is now well into its growth cycle.”  

“Buyers still have a great deal of leverage in these markets, with listing numbers remaining high, long selling times and high rates of discounting. However, in another indication that conditions may be moving through the bottom of the cycle, transaction volumes moved higher across both markets prior to the seasonal downturn in December and January, whilst the average selling time reduced from previously higher levels,” Mr. Lawless added.

 This is not a bad time to buy property in Australia online because we could yet be headed for a real boom in the property market, especially in cities outside of Sydney and Melbourne, which still have a lot of catching up to do.

The last 12 have seen a price rise of 11.8% in Melbourne and 16% in Sydney (16%). The cumulative increase in real estate prices in the two cities since 2012 has been extraordinary - 70.5%.

Much of this can be attributed to the massive overseas interest in properties in Sydney and Melbourne. Wealthy, high net worth Chinese are among the biggest buyers of properties here.

 Indeed, there are many post colonies in Sydney and Melbourne that have been completely taken over by wealthy Chinese homebuyers, much to the chagrin of the local population.

Politicians such as Gladys Berejiklian, the new premier of New South Wales have made increasing housing supply and cutting down home prices a big priority. Ms. Berejiklian told the media, “The average person that lives in Sydney, if they want to buy a house in Sydney, that shouldn’t be out of reach for them.”  

While there are many in Australia who complain that overseas investment in properties here have made it impossible for the locals to buy a home of their own, the local homeowners are not complaining.

The high value of real estate here has pushed up the net worth of most people who own homes in Australia. The average home owner in the cities of Melbourne, Sydney and Brisbane is a millionaire because of the value of their homes.