First time buyers in Australia are now snapping up apartments.
First time buyers are being priced out of the Australian property market as prices continue to rise and show no sign of abating.
Melbourne is now leading a surge in affordable apartments for young people and first time buyers as traditional houses are now out of their price range. Sydney’s apartments are already rising in price as people desperate to get on the ladder snap up central city apartments.
Currently the average price for a house in Australia is around $544,000 whilst apartments are a good $155,000 cheaper. It is expected that the apartment trend being seen in Sydney and Melbourne will spread throughout Australia as experts warn that the housing market does not look like it will dive anytime soon.
Traditional houses in central locations are now the preserve of the rich, whilst houses in outer suburbs are following suit. Real estate agents are recommending that young people invest in apartments instead which will enable them to gain a foothold on the housing ladder for a much cheaper price.
Melbourne saw a 25% increase in apartment and studio sales during the second half of last year. An average city apartment is going for around $305,000. This is compared to Sydney centrally located apartments at $550,000, however for luxury apartments in sought after areas this can rise to $1.5 million.
Some analysts are predicting a housing crash in Australia, but others say that investment in Australia is still strong and with the demand for housing so high, a housing crash doesn’t look likely.
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