Tag archive: sydney housing market

Australia’s Housing Market is Worth $6.87 Trillion

Australia’s housing market is now valued at $6.87 trillion, according to the Australian Bureau of Statistics.

The ABS house price index found that the average Australian residential property prices increased by 1 per cent in the three months to December, gaining almost $93 billion. The average home price in Australia is now $686,700.

Despite this record number, the market is finally slowing down after years of growth. The national annual average gain of residential property prices in eight capital cities now stands at 5 per cent, down from 10.2 per cent rise in the year to June.

In the year to December 2017, Sydney property prices grew 3.8 per cent while Canberra rose 5.7 per cent, Melbourne 10.2 per cent and Hobart 13.1 per cent. The only capital experiencing decline was Darwin with 6.3 per cent year-on-year fall.

News: Sydney’s Housing Market Second Most Unaffordable in the World, New Survey Found

Sydney’s housing market has been rated as the second most expensive in the world, according to the 13th Annual Demographia International Housing Affordability Survey: 2017.

Sydney, which is only topped by Hong Kong, beats other cities including San Jose (fifth most expensive) and Los Angeles (eighth).

The survey rates housing markets based on the World Bank-recommended “median multiple” principle, which divides median house price with median household income. A score of 5.1 and above is categorised as “severely unaffordable”.

10 Least Affordable Housing Markets

1            Hong Kong                       18.1

2            Sydney, NSW, Australia 12.2

3            Vancouver, Canada        11.8

4            Santa Cruz, CA, USA        11.6

5            Santa Barbara, CA, USA  11.3

6            Auckland, NZ                   10

7            Wingcaribbee, NSW, Australia    9.8

8            Tweed Heads, NSW, Australia    9.7

9            San Jose, CA, USA            9.6

10          Melbourne, VIC, Australia           9.5

The report found that 47 of Australia’s 54 markets are categorised as “seriously unaffordable” or “severely unaffordable”. The report’s co-author, Hugh Pavletich said the contrast between Australia’s land size and its housing prices indicates a “decentralisation” issue.

“State and local governments have lost the control of their costs and their capacity to finance infrastructure properly,” said Pavletich.

“Sydney house prices are about 12.2 times annual household incomes which is grossly excessive… What housing should be in normal markets is at or below three times household earnings, so Sydney is four times what it should be.”

The newly-sworn in NSW premier, Gladys Berejiklian said in her first press conference that housing affordability would be one of her policy priorities.

“I want to make sure that every average hard-working person in this state can aspire to own their own home,” said Berejiklian.