13 September 2017
Australian house prices have continued to rise over the past year and everyone has a view on why it will go up, down or sideways. The question should be, where is the greatest risk? A professional investor may tell you “in the price”.
This article is one we thought our clients would enjoy. The map below, courtesy of CoreLogic, provides an interesting insight, perhaps one we intuitively know but the magnitude of disparity may be surprising. Click to enlarge for the fine print.
- The map below shows that almost all growth in residential property has been driven by Sydney and Melbourne;
- The divergence between these cities and the rest of the country reflects stronger economic conditions over the year and stronger population growth;
- The Australian property market is not one market but many;
- Prices in Sydney and Melbourne slowed in August meaning property in Australia’s capitals grew by just 0.1%;
- Moderation in prices is expected after a strong growth run;
- Auction clearance rates fell to 66.4% across Australia’s capitals;
- APRA’s macro-prudential measures are having an impact.
Of course, there are counterarguments in the lively debate and the spring property season will be watched with great interest.