Invest
Bargain buys on the rise as new property forecasts released
Housing affordability has again improved across the board, making way for bargain buys in key Australian property markets for the remainder of 2019.
Bargain buys on the rise as new property forecasts released
Housing affordability has again improved across the board, making way for bargain buys in key Australian property markets for the remainder of 2019.
Across the board, ratings agency Moody’s has found that housing affordability has improved by 2.2 per cent for the March quarter.
Further, the proportion of household income needed to meet repayments on new mortgages dropped 2.2 percentage points in the last 12 months. It now sits at 26.5 per cent.
Cities that experienced the highest gains during the recent boom period are now experiencing the highest drops.
For example, property is notably more affordable in Sydney now, with the proportion of household income needed to meet repayments on new mortgages declining by 4.7 percentage points over the year to 33.2 per cent.
Further, in Melbourne, the proportion of household income needed to meet repayments on new mortgages decreased by 2.2 percentage points to 29.4 per cent over the same period.
However, these patterns are flipped in Adelaide. The proportion of household income needed to meet repayments on new mortgages rose by 1.3 percentage point to 23.1 per cent in the year to March this year.
A buyer's market
Key capital city markets, particularly Sydney and Melbourne, are now broadly considered buyers' markets.
Although the short-term dives - which are the most intense since the GFC - can be off-putting for investors, the long-term gains in key property markets remain high and steady.
A look at 20 years' worth of property data earlier this year showed gains of about 200 per cent.
Research house CoreLogic found dwelling values have soared by 197.4 per cent over the last 20 years to January 2019, with the combined capital cities rising by 212.4 per cent, followed by the regional markets with 150.3 per cent growth.
Melbourne is the greatest beneficiary of this long-term explosion in prices, having grown 274.6 per cent over the last 20 years, followed by Hobart with 237 per cent.
Among the other capital cities, Canberra rose by 230 per cent, Sydney 201.9 per cent, Adelaide 193.8 per cent, Brisbane 182.8 per cent, Perth 148 per cent.
Darwin was the only market not to see triple-digit price growth, with values up by a more subdued 38.4 per cent.
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
Property
House values dragged down in latest index
A new set of figures outlining the present state of Australia’s residential property market has been released, indicating a bleak outlook for growth in metropolitan areas as the Reserve Bank of Aust...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
Property
House values dragged down in latest index
A new set of figures outlining the present state of Australia’s residential property market has been released, indicating a bleak outlook for growth in metropolitan areas as the Reserve Bank of Aust...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
