Australia’s Housing Market Second Most Expensive
It has been revealed by the Global Living Report from property group CBRE that property prices in Australia over the past three decades have increased more than any other worldwide housing market, with the exception of Britain.
Since 1975, house prices in Australia have increased by a whopping 221.4 per cent, whilst house prices in Britain have increased by a staggering 232 per cent. Other countries that have seen a similar level of growth include Ireland at 185.5 per cent, Belgium at 174.4 per cent, followed by France at 147.0 per cent and Norway at 144.6 per cent.
However, at the other end of the scale is Japan that has dropped by 14.5 per cent as well as Germany that has seen house prices fall by 7.8 per cent over the same period.
Some of the major factors that are believed to spur this increase include population growth, contributed by a rise in immigration numbers as well as a major undersupply of new housing, especially in Australia’s largest capital cities including Sydney, Melbourne and Brisbane.
Unlike other European countries and the US that suffered during the global financial crisis, Australia continued to have a sound economy with its long period of financial stability which helped house prices not fall too drastically with the banks supporting capital appreciation.
Sydney is now recognised as the fourth most expensive city in the world for brand new apartments, whilst London still holds the spot for number one. In London, new apartments can cost $3,662 per square metre, with Sydney following closely behind at $3,296 per square metre.
However, house prices in Australia are beginning to slow down now with only Sydney, Brisbane and Melbourne having price rises on a one-month basis according to RP Data.
Published on 26th of May 2015 by Marty Stanowich