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Opinion

House prices now ‘unaffordable’ for many average Australians

House prices

A sobering report by real estate professionals has said property prices are “increasingly unaffordable” and Australians may never own a home.

First time home buyers are all too aware buying their first pad right now is a struggle.

Now that’s been confirmed by the industry itself with real estate professionals darkly warning large numbers of “average” Australians “may never be able to enter the property market” given the inexorable rise in prices.

That sobering residential reality comes as it was confirmed Sydney house prices had soared. The average house is in the Harbour City is now going for $1.1 million with units at $800,000.

A typical Sydney house is now about $117,000 pricier than it was at the end of February. Industry organisation the Australian Property Institute (API) and tech firm The Search People surveyed almost 600 property valuers across Australia to gauge their attitudes to the property market.

Property valuers conduct detailed inspections of homes, looking at the number of rooms and size as well as a property’s condition to ensure it’s fit to be bought or sold, is priced correctly and if any improvements need to be made to make it market ready.

Almost half think property ‘unaffordable’ for average Australian

The report found 59 per cent of valuers believed the Australian housing market was currently in a bubble. While 55 per cent thought most homebuyers were over capitalising on their purchase.

Most damningly, 43 per cent of valuers said property was now essentially out of reach for the “average” Australian.

“The likelihood of owning a home is becoming increasingly low as residential property becomes unaffordable for the average Australian,” the firms stated.

“Aussies may never be able to enter property market.

 House prices

Almost half of property valuers believe property is unaffordable for the average Australian. Picture: Australian Property Institute/The Search People.Source:Supplied 

“Professional valuers believe Australia’s residential real estate prices will continue to rise despite serious affordability and sustainability concerns,” the report added.

There may be a bubble, but in the short term at least that bubble doesn’t seem set to burst, said The Search People’s Rafe Berding.

“Most respondents believe a boom is set for the Australian property sector, however the majority also believe Australia is currently witnessing the makings of a property bubble.

“A combination of record low interest rates and buyers’ uncertainty of investing in other alternatives is fuelling high demand. This coupled with low supply is driving a ‘fear of missing out’ for many buyers.

“As a result, in some cases, properties are being snapped up significantly above the asking price within moments of being listed,” he said.

 House prices

Property values are predicted to surge, particularly in Brisbane. Picture: Australian Property Institute/The Search People.Source:Supplied 

Sydney, Melbourne, Perth seeing the strongest growth

Almost two-thirds said they saw “continued strong growth” for property values across Australia’s six main capitals in the next six months.

The report said this was a “worrying” trend that would disadvantage many prospective buyers.

More than 60 per cent of those surveyed in Sydney, Melbourne and Perth said they expected prices to rise. In Brisbane, it was even starker with 70 per cent believing a price jump would occur with around 12 per cent of those saying prices in the Queensland capital could go up by more than 10 per cent.

Adelaide is the most affordable capital, but even here more than 55 per cent of valuers have said the only way is up for house prices.

API chief executive Amelia Hodge said the market was firing on all cylinders.

“With record low interest rates, we’re seeing more and more buyers entering the market.

“This is great news for Australians selling property, especially with values on the rise in most sectors and selling times decreasing across most capital cities.”

More than half of those surveyed said Australians should be allowed to access their super to pay for property.

Sydney average house price now $1.1m

Data from property research firm CoreLogic, released on Tuesday, showed prices for all categories of housing rose 3 per cent for the month – one of the largest monthly rises on record.

The median price of a Sydney house is now $1.186 million, while the median unit price is $782,000, according to the data firm.

CoreLogic head of research Tim Lawless said the median house price would likely hit the $1.2 million mark soon – even as early as next month. “It wouldn’t take much growth, it’s nearly there,” he said.

May’s bump in prices was a modest slowdown from March, when values climbed at the fastest pace in 32 years, but the growth still dwarfed price rises across the rest of the country.

Sydney’s price rise was 66 per cent higher than in Melbourne and about 36 per cent higher than the national average.

Mr Lawless said he expected rises to moderate over the coming months as buyers became priced out of the market.

“It will reach a point where fewer buyers can compete,” he said.

Housing supply was also beginning to increase in many suburbs and a further increase would take pressure off of buyers to bid up prices.

A shortage of listings had been one of the biggest drivers of the recent price boom, Mr Lawless said.

Backing up the API report that Perth is set to for a big rise in prices was an analysis by comparison website Finder.

In Perth, property prices were predicted to rise by 8 per cent over the next seven months, adding almost $80,000 to the value of properties, giving them an average value of $609,000.

Australian Bureau of Statistics data from April showed the average deposit needed to secure a mortgage was $106,743 – an increase of 16 per cent since January 2019.

The ACT had the largest home deposit increase since 2019, with the upfront amount required swelling by 24 per cent to $117,790, followed by NSW – up by 23 per cent to $128,469.

 

Article Source: www.news.com.au

Gold Coast

Why owner-occupiers are loving the Chevron Island apartments at Allure

Allure

Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space

Offering a unique blend of inner-city convenience and coastal bliss, it is no surprise that owner-occupiers are acting quickly to secure an apartment at Allure.

The latest development by Macquarie York, Allure is “inherently opulent and meticulously crafted”, a resort-style development in the heart of the Chevron Island precinct.

Delivering 95 two, three and four-bedroom apartments, the project boasts generous floorplans and a sleek contemporary design by BDA Architects.

Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space.

“Whether you’re entertaining or enjoying some private reflection time, you will always feel right at home”, the project marketing reads.

Allure

Allure Chevron Island Corner Burra Street & Dalpura Street, Chevron Island QLD 4217 

Among other design details are the subtle natural timbers and stone that celebrate the beauty of organic materials and connect the interiors with the landscaping outside.

Contemporary bathrooms feature a semi-frameless shower, large format tiling and intelligent storage.

However, it’s the wealth of facilities designed to enhance quality of life that are pulling in buyers to the Gold Coast development.

The rooftop, the pinnacle of Allure, delivers panoramic views from north to south, while residents can enjoy an exclusive lounge, barbeque and dining area, infinity pool as well as several viewing decks to take in the impressive vistas.

A coastal aura and resort experience is felt as soon as you walk through the prominent lobby doors, with a double-storey atrium is crafted to draw natural light while bespoke lighting add a touch of elegance.

Chevron Island is a location that allows Allure to feel both secluded and connected.

“Everything you need to lead an exceptional life is at your fingertips, yet the hustle and bustle of modern life is kept at bay”, the developers said.

The development is expected to reach completion in mid-2022 but discerning buyers should act fast to secure one of these exclusive residences.

 

Article Source: www.urban.com.au

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Opinion

Investing in property: The art of picking the right drivers for price growth

property

It’s all a question of demand and supply, and nowhere is that more critical than when planning a residential property investment.

The art of picking the right drivers for price growth is a tricky one.

You might have found the perfect property in a popular area with lots of jobs, a healthy rate of population migration and excellent infrastructure but if there are plans underway for 1000 new homes in the next year … suddenly, it’s no longer such a good prospect.

property

Buying an investment home in an area with chronically high demand and low stock will ensure higher returns in the long term. Photo: Vaida Savickaite 

“The basic equation that underlines everything is a low level of supply and a high level of demand,” says Kate Hill, founder and director of investment property buyers’ agency Adviseable.

“And you want that imbalance to be sustained, not just short-term in a volatile mining market, for instance, or for the demand to be extrinsic, like the quick blip in Brisbane when the Olympics come but then everyone moves on. It has to be good, long-term demand to drive capital growth.”

You also need to judge the demand for the type of property too.

There’s no point in investing in a two-bedroom apartment if everyone there is looking for four-bedroom houses.

Don’t be too entranced, either, by the promise of good capital growth in a spot where rents are low and there might be a high vacancy rate and too many days on market for property sales.

Uwe Jacobs, the founding director of Property Friends and author of the book, The 7 Secrets of Highly Successful Property Investors, says being enticed by the lure of negative gearing schemes is a common error of people trying to build a property portfolio.

“The main driver for investment is the balance between the short-term income of rental income and the long-term prize of capital growth,” he says.

“That rental money is what’s going to sustain you during periods of low, or no, capital growth so your investment doesn’t eat you out of house and home.

property

Investors will need to conduct research in key property data before taking the plunge. Photo: Vaida Savickaite 

“The vast majority of people invest for financial independence, choices in retirement or leaving a legacy to children, so highly negatively geared properties aren’t the way to go. You need a more risk-averse strategy.”

That means not skipping essential research, he advises.

All factors like vacancy rates, days on market, median prices, growth forecasts, any upcoming property developments, and whether there’s an influx of people – or they’re leaving – are all critical to calculations.

“And you need to visit the area to check that it physically matches the research,” Jacobs says.

More than almost anything, the area where you’re considering investing should also be liveable and desirable.

“It should have amenity close by,” says Lachlan Vidler, director of the Atlas Property Group.

“That means transport options for people to get to work easily, shops, cafes, restaurants and parks, so there’s plenty to do when family or friends visit. Don’t be too caught up in promises of infrastructure to come, either. How many promises of infrastructure have there been which takes decades to arrive – if it ever, eventually, does?”

 

Article Source: www.domain.com.au

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Opinion

What to ask agents when being taken through a display suite online

agents

Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections, useful both during lockdown and for those buying out of state or internationally

Australians have been staying at home on and off during the intermittent lockdowns and for homebuyers, this means a delay, sometime indefinitely, in purchasing property.

However, data in both the first Melbourne lockdown and beyond shows that online visits and enquiries of property listings have surged by over 50%.

Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections. This is useful both during lockdown and for properties available for purchase off-the-plan, or available across state or national borders when in-person inspection may not be possible.

For a more in-depth guide on off-the-plan buying check out our expert guide.

1. What’s the cost per square metre for each floorplan configuration? (make a note of this and compare to other properties you virtually view)

This is vital information to compare the value of the property to others in the area as well as the suburb/region you are looking to buy in. It is important to make sure you are buying a property that suits your needs and has room to grow, one marker of such potential is if the $/psqm is below median for the area, however it isn’t the be all end all

2. When is construction slated to start/be completed?

Construction projections are important information as it will have an effect on how long you may rent or choose to settle on your current property. Ensure the builder/construction firm is reliable and has a good reputation to reduce the likelihood of delay.

Keep in mind that some delays may occur if a coronavirus outbreak occurs.

3. Which items within the display are included and which are optional upgrades?

Straightforward enough, make sure you don’t get blindsided and chuck out your old washer/dryer just because the display suite has one, double check with the agent to see what is supplied by the developer as some offer white-goods packages and optional deals.

4. What customisation option do you have available?

Depending on the design firm and developer, some firms offer a higher degree of customisation, this tends to increase linearly with price as the more expensive the property is, the more customisable it generally is. Either way you should ask as many developments offer at minimum a choice in colour pallete and fittings

5. What’s the ceiling height? (compare this to your own ceilings at home)

While this many not mean as much to someone who is 150 cm tall, for prospective basketball players… and everyone else, it’s worth knowing ceiling height as this can impact whether the home feels claustrophobic or spacious and airy regardless of your personal height.

6. Which aspect does the particular apartment I’m considering buying face? (take note of where the sun is throughout the day in your own home)

This is important for natural light purposes, as well as potential views as some apartments will offer a better aspect than others.

7. Who built the display suite and will they be constructing the actual apartments/townhomes?

A vital point of note is the builder, don’t misunderstand something because of an unrealistic display suite.

8. If taking a virtual tour, ask the agent to zoom in on details so you can see the build quality

If the builder doesn’t put their best foot forward with the display suite, it is worth asking the agent about it and whether other properties you have looked at demonstrate better build quality or detailing.

 

Article Source: www.urban.com.au

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