Australia's impending property boom: How the average cost of a home will surge to $6.3MILLION

[TruthTheOnlyDefense]

© Provided by Associated Newspapers Limited


Average homes in Australia may cost up to $6.3million in just 25 years, a bombshell study has revealed.

Projections show median house prices will reach that figure in Sydney by 2043 - up from $1.03million today.

The Aussie Home Loans and CoreLogic survey predicts average prices will hit $5.8million in Melbourne, $2.9million in Canberra, $2.5million in Perth and $2.3million in Brisbane - with the biggest increase in Melbourne.

Wages will also increase over this time - but with Australia enduring one of the lowest rates of wage growth in the world, the prospect of houses becoming less affordable is very real.

© Provided by Associated Newspapers Limited Projections show median house prices will reach that figure in Sydney by 2043 - up from $1.03million today

Chief Executive Officer of Aussie, Mr James Symond, said: 'Housing continues to grow as Australia's largest asset class. If the changing face of residential property and staggering growth of technology we've seen over the last 25 years continues, it's likely the next 25 years will produce even greater change.'

He added: 'I expect the growth trend will continue especially with high immigration levels.'

Byron's Suffolk Park topped the nation for value growth, with the median house price moving from just $74,250 25 years ago to $1,185,000 in 2018, an increase of 11.7 per cent per annum.

Coastal and lifestyle markets around the Hunter and Illawarra regions were also standouts, comprising four suburbs in the national Top 10.

Melbourne has had the largest annual percentage increase in both house and unit values within a capital city over the past 25 years.

House values have risen at the annual rate of 8.1 per cent or $28,300 since 1993.

At the same rate of growth over the next 25 years, Melbourne’s median house value could rise from $825,000 to $5,825,000 in 2043.

Mr Symond suggested this meant a housing crisis in the city could be one of the most acute in the country.

He said: 'Housing affordability remains a major issue for people in Melbourne, largely driven by the recent and dramatic housing price growth across the city.

© Provided by Associated Newspapers Limited The report revealed the top 20 suburbs in Melbourne for value growth over the last 25 years, with the Mornington Peninsula's Flinders the star performer

© Provided by Associated Newspapers Limited

'Buyers now need to dedicate 160 per cent of their annual gross household income to raise a 20 per cent deposit, with property worth a staggering eight times annual household incomes.'

Simple extrapolations don't take into account how economic and demographic conditions might play out over the next 25 years or how housing demand and supply may evolve.

But this report may add weight to the growing feeling - especially among Australia's young - that more houses need to be built to ease such dramatic price increases.

The Korn Ferry 2018 Salary Forecast predicted Australia would have the lowest real wage growth of 97 countries surveyed with an increase of just 0.7 per cent.

© Provided by Associated Newspapers Limited Melbourne has had the largest annual percentage increase in both house and unit values within a capital city over the past 25 years

https://www.msn.com/en-au/money/hom...be-hit-the-hardest/ar-AAyzkGV?ocid=spartandhp

 

[srshkmr]

This is contributed by the influx of Chinese Investors in the property sector. Hope the prices don't go up too much. I was planning to get one Apollo Bay (Great Ocean Road)

 

[TruthTheOnlyDefense]

This is contributed by the influx of Chinese Investors in the property sector. Hope the prices don't go up too much. I was planning to get one Apollo Bay (Great Ocean Road)

Awesome spot, love the Great Ocean Road been along that drive many times.

 

[Hamartia Antidote]

??? Is it common in Australia to be packed this close? The houses are taking up the whole property (well the second one isn’t as bad as the first). This is like some areas of Las Vegas.

 

[TruthTheOnlyDefense]

??? Is it common in Australia to be packed this close? The houses are taking up the whole property (well the second lis isn’t as bad as the first). This is like some areas of Las Vegas.

That's not close there are big front yards and backyards they just look close.

 

[Mista]

Build more apartments instead of houses?

 

[TruthTheOnlyDefense]

Build more apartments instead of houses?

We don't like living in apartments, they tried to build apartments in cities but no one wanted to move there.

We prefer big backyards so we can have BBQ's etc, some people do live in apartments but it's a very low percentage.

Australians love the great outdoors, we love the beach, being outside in nature.

 

[Mista]

We don't like living in apartments, they tried to build apartments in cities but no one wanted to move there.

We prefer big backyards so we can have BBQ's etc, some people do live in apartments but it's a very low percentage.

Australians love the great outdoors, we love the beach, being outside in nature.

Well if you want to live in a house with proximity to a big city, you can't complain about the price then.

 

[Vassnti]

Record low wage growth, rising cost of living, falling house prices every where but Hobart, tightening bank finance ( as in you actually have to prove you can make repayments before the banks throw a couple of million at you )
apart from the basic fact that very few people could afford a 6million dollar home, not happening.

https://www.macrobusiness.com.au/2018/03/charting-aussie-house-prices-versus-housing-finance/

 

[TruthTheOnlyDefense]

Record low wage growth, rising cost of living, falling house prices every where but Hobart, tightening bank finance ( as in you actually have to prove you can make repayments before the banks throw a couple of million at you )
apart from the basic fact that very few people could afford a 6million dollar home, not happening.

https://www.macrobusiness.com.au/2018/03/charting-aussie-house-prices-versus-housing-finance/

The average cost of house and land is $550,000 not $6.5 million

Record low wage growth, rising cost of living, falling house prices every where but Hobart, tightening bank finance ( as in you actually have to prove you can make repayments before the banks throw a couple of million at you )
apart from the basic fact that very few people could afford a 6million dollar home, not happening.

https://www.macrobusiness.com.au/2018/03/charting-aussie-house-prices-versus-housing-finance/

Still better than 95% of countries in the world.

 

[fiza200]

What about property in Pakistan?

 

[TruthTheOnlyDefense]

What about property in Pakistan?

Don't know.

 

[timmy_area51]

It's still Australian Dollar could collapse anytime , along with the US dollar

 

[my2cents]

© Provided by Associated Newspapers Limited


Average homes in Australia may cost up to $6.3million in just 25 years, a bombshell study has revealed.

Projections show median house prices will reach that figure in Sydney by 2043 - up from $1.03million today.

The Aussie Home Loans and CoreLogic survey predicts average prices will hit $5.8million in Melbourne, $2.9million in Canberra, $2.5million in Perth and $2.3million in Brisbane - with the biggest increase in Melbourne.

Wages will also increase over this time - but with Australia enduring one of the lowest rates of wage growth in the world, the prospect of houses becoming less affordable is very real.

© Provided by Associated Newspapers Limited Projections show median house prices will reach that figure in Sydney by 2043 - up from $1.03million today

Chief Executive Officer of Aussie, Mr James Symond, said: 'Housing continues to grow as Australia's largest asset class. If the changing face of residential property and staggering growth of technology we've seen over the last 25 years continues, it's likely the next 25 years will produce even greater change.'

He added: 'I expect the growth trend will continue especially with high immigration levels.'

Byron's Suffolk Park topped the nation for value growth, with the median house price moving from just $74,250 25 years ago to $1,185,000 in 2018, an increase of 11.7 per cent per annum.

Coastal and lifestyle markets around the Hunter and Illawarra regions were also standouts, comprising four suburbs in the national Top 10.

Melbourne has had the largest annual percentage increase in both house and unit values within a capital city over the past 25 years.

House values have risen at the annual rate of 8.1 per cent or $28,300 since 1993.

At the same rate of growth over the next 25 years, Melbourne’s median house value could rise from $825,000 to $5,825,000 in 2043.

Mr Symond suggested this meant a housing crisis in the city could be one of the most acute in the country.

He said: 'Housing affordability remains a major issue for people in Melbourne, largely driven by the recent and dramatic housing price growth across the city.

© Provided by Associated Newspapers Limited The report revealed the top 20 suburbs in Melbourne for value growth over the last 25 years, with the Mornington Peninsula's Flinders the star performer

© Provided by Associated Newspapers Limited

'Buyers now need to dedicate 160 per cent of their annual gross household income to raise a 20 per cent deposit, with property worth a staggering eight times annual household incomes.'

Simple extrapolations don't take into account how economic and demographic conditions might play out over the next 25 years or how housing demand and supply may evolve.

But this report may add weight to the growing feeling - especially among Australia's young - that more houses need to be built to ease such dramatic price increases.

The Korn Ferry 2018 Salary Forecast predicted Australia would have the lowest real wage growth of 97 countries surveyed with an increase of just 0.7 per cent.

© Provided by Associated Newspapers Limited Melbourne has had the largest annual percentage increase in both house and unit values within a capital city over the past 25 years

https://www.msn.com/en-au/money/homeandproperty/australias-impending-property-boom-how-the-average-cost-of-a-home-will-surge-to-dollar63million-in-just-25-years-and-its-not-sydney-that-will-be-hit-the-hardest/ar?ocid=spartandhp

There is too much land in Australia for your population. When prices go up people move to other cities where they can afford homes to match with their incomes. Businesses move too if they have to pay salaries in six figures. Going vertical is not a bad idea. Just look at New York.

 

[TruthTheOnlyDefense]

There is too much land in Australia for your population. When prices go up people move to other cities where they can afford homes to match with their incomes. Businesses move too if they have to pay salaries in six figures. Going vertical is not a bad idea. Just look at New York.

It's not a bad idea, but we don't like living in buildings here, we like open land if I take a picture or my backyard you will know what I mean.

We love the outdoors love spending time out in the sun, that's why we play so many sports etc.