Those interested in Australia’s real estate market may be wondering what the value of real estate is in Australia. After all, the country’s real estate industry is worth an estimated $AUD 5 trillion. With a population of only 25 million people, that works out to be a whopping $200,000 for every man, woman, and child in Australia.
So, what is the value of real estate in Australia and how does it compare to other countries? Here are some facts and figures about Australia’s real estate market that may help to answer that question.
The median house price in Australia is $AUD 610,000. That is slightly higher than the US ($AUD 596,000), but lower than Canada ($AUD 636,000) and New Zealand ($AUD 663,000). When it comes to real estate prices, Australia is somewhere in the middle among developed countries.
Australia’s Real Estate Market From A Different Perspective
However, when you look at Australia’s real estate market from a different perspective, it appears to be quite expensive. For example, the average Australian house costs 11.4 times the average annual salary. In comparison, the US and Canada are 9.3 and 8.6 times respectively, while New Zealand is 10.2 times. This means that Australia’s housing market is less affordable than most other developed countries.
The value of the real estate in Australia has been increasing steadily for the past few years. In 2019, the median house price increased by 7.4% while the median unit price rose by 5.5%. This is good news for Australian homeowners, but it makes Australia’s real estate market less affordable for first-time buyers and investors.
What Is The Future Of Australia’s Real Estate Market?
The future of Australia’s real estate market looks promising. Despite the recent slowdown in the Australian economy, the real estate market is expected to continue to grow in the coming years. Here are 5 reasons that may suggest that kind of positive future trend:
1. Growth in population:
Australia’s population is expected to grow by 11% over the next 10 years. This growth will create more demand for housing, which will in turn drive up prices.
2. Low-interest rates:
Interest rates are currently at historic lows and are expected to stay low for the foreseeable future. This will make Australian real estate more affordable and increase demand.
3. Increased foreign investment:
Australia is a popular destination for foreign investors, especially from China and Hong Kong. These investors are attracted by Australia’s stable economy and political environment, as well as the potential for high returns on investment. This increased foreign investment will help to support Australia’s real estate market.
4. Strong economic growth:
Despite the recent slowdown, Australia’s economy is expected to grow by 2.7% in 2020 and 3.0% in 2021. This strong economic growth will create more jobs and increase wages, which will lead to more people buying homes.
5. Improved housing affordability:
The recent increase in real estate prices has made housing less affordable for many Australians. However, this is expected to change in the coming years as incomes grow and interest rates stay low. This will make Australia’s real estate market more affordable and increase demand.
What About The Forecasted Demand For Residential Units?
It is projected by BIS Shrapnel that the total number of residential units (houses and apartments) will grow by 1.7% per year between 2020 and 2030. That is a total increase of 36%, or 2.4 million dwellings, over the next 10 years. This growth in demand will be driven by population growth, increased foreign investment, and improved housing affordability.
The Australian real estate market is expected to continue to grow in the coming years, driven by population growth, low-interest rates, increased foreign investment, strong economic growth, and improved housing affordability.
The Role Of Real Estate Agents When Buying Or Selling Property In Australia
Real estate agents play an important role when buying or selling property in Australia. Real estate agents are experts in the Australian real estate market and can help you to find the right property at the right price. They can also provide valuable advice on the best way to buy or sell property in Australia.
If you are thinking of buying or selling property in Australia, it is important to use an experienced and reputable real estate agent. There are many reasons for this, and here are 5 common reasons:
1. They understand the Australian real estate market:
Real estate agents understand the Australian real estate market and can help you to find the right property at the right price.
2. They have a network of contacts:
Real estate agents have a network of contacts in the Australian real estate industry and can help you to find the right buyer or seller for your property.
3. They can save you time:
Real estate agents can save you a lot of time by doing all the legwork for you. This includes finding properties that match your requirements, negotiating prices, and dealing with paperwork.
4. They can provide valuable advice:
Real estate agents can provide valuable advice on the best way to buy or sell property in Australia. They can also advise you on the current market conditions and help you to make the best decision for your circumstances.
5. They can save you money:
Real estate agents can save you money by helping you to find the right property at the right price. They can also negotiate discounts on your behalf and save you money on fees and commissions.
When buying or selling property in Australia, it is important to use an experienced real estate agent who understands the Australian real estate market. Real estate agents can save you time, and money, and provide valuable advice throughout the process.
Conclusion
The Australian real estate market is forecast to continue to grow in the coming years, driven by strong economic growth, increased foreign investment, improved housing affordability, and population growth. Real estate agents play an important role when buying or selling property in Australia and can help you to find the right property at the right price.
