Australian house prices are still booming.
Rising house prices in Australia may be bad news for first time buyers, but for those wishing to make an investment in housing, Australia is looking like an attractive prospect.
House prices in Australia have risen by 3.7 per cent in the past three months, with Melbourne seeing the highest rise at 6.1 per cent. The average house price in Melbourne was $437,560 in September of last year, compared to the average now of $487,249.
Hobart house prices have risen by 5.4 per cent, Canberra by 4.8 per cent and Sydney by 3.6 per cent. However those living in the more expensive suburbs of the city are not benefiting from the rises. Prices in Point Piper and Bronte in Sydney have fallen by up to 30 per cent since 2007, according to APM economist Matthew Bell.
The explosion in house prices is thought to have been triggered by investors who hope to reap the rewards of a housing boom. However some economists are warning that the boom will be short-lived as first time buyers are priced out of the market.
Other factors involved in the property boom are the generous grants for new home buyers, low unemployment and a strong population growth, especially in immigration.
Immigration figures for Australia remain high, despite a fall in the number of people immigrating to Australia from the UK. Many of these immigrants to Australia are buying new houses which is fuelling demand and helping to raise prices.
The Reserve Bank of Australia will meet later this week to discuss raising interest rates again.
Despite warnings from economists that the rise in house prices will be shortlived, buying a house in Australia is still a sound investment given the strong Australian economy and it’s growing population. Whilst house prices may stabilise next year, they are unlikely to fall.
If you are looking to buying a house in Australia or are planning to immigrate to Australia, check out our guide to living in Australia and join our friendly community for further advice and discussions on all the latest immigration news.
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2 Responses to “Australian House Prices Rise Again”
Comment by Steven McGrath — November 9, 2009 @ 3:08 pm
Why are we choosing to increase our population to improve economic output at the cost of young working Australians ability to purchase their first home?
The talk is to increase the size of Melbourne to 5.5 million people however we already have land shortages within 30km of the city? Surely any gains in economic output through economies of scale will be lost by the increased cost of housing for the young (I guess the majority who already own their house and made a fortune for living in it will benefit)?
Shortly the only people capable of purchasing houses will be these people wanting to make more money for increased demand for rental properties from increased population and renters unable to enter the property ladder.
As rent will be all that some can afford, the gap in wealth will continue to increase between land owners and renters.
Why don’t we slow immigration to sustainable levels that we can build infrastructure to support and remove negative gearing on residential property and directly subsidise the renters that require this assistance and not the landlords.
This will increase the supply and lower the cost of houses through our ability to develop enough supply for the increased population. Along with the sell off from investors as tax breaks can no longer be received. These changes will allow renters wanting to buy into the market a chance to realise their dream of owning a house, a dream I don’t think should be out of reach no matter what generation you were born in.
Thank you!
Comment by Doug — July 18, 2010 @ 3:34 pm
Bring in more people as the existing population’s standard of living is declining. They want us to live in dog boxes and drink dirty water as big business wants more consumers and leftists want white Australians to tone for their sin of migrating to Australia or in alot of cases with old Australians being transported.