Rising interest rates may be making some people hesitant to buy property because they fear they won’t be able to withstand the stress of mortgages.
But whether you’re looking for a home to build a home in or an investment property, Australia has some bargains.
Hayden Groves, president of the Australian Real Estate Association, told NCA Newswire that markets like Sydney, spurred by low interest rates and economic stimulus, will experience rapid price gains of around 30% in 2021, up from earlier this year. said to have peaked in
“Other East Coast markets have performed similarly and are now starting to moderate as affordability constraints impact,” he said.
“By contrast, the Perth and Darwin markets have underperformed compared to East Coast cities since early 2020.
“They are now enviable, more affordable and continue to grow thanks to migration-led demand, a strong economy and tight housing supply.”
Groves has observed that prices are starting to rationalize in the hyperinflationary markets of Sydney and Hobart due to buyer uncertainty.
“Brisbane’s market remains booming thanks to immigration pressures stimulating demand, while Adelaide remains strong thanks to the impact of relocation flows from more expensive areas across Melbourne. ‘ he said.
“Price gains have already reversed in Melbourne, Sydney and Hobart, but Perth and Adelaide remain strong on the back of more subdued growth.”
Groves said Perth remains Australia’s most affordable capital city.
“The average mortgage holder is giving up about 24% of their wages to pay off their loans,” he said.
“Compare this with Sydneyians who are currently giving up, on average, 46% of their salary to cover their mortgage payments.
“Perth’s median home price is around $550,000, less than half the Sydney median and well below Hobart, Brisbane and Adelaide.”
Darwin and several major regional cities in east Victoria, north Adelaide and northeast Tasmania are also worthwhile, Groves added.
He noted that interest rates remain low and have risen from “emergency” levels.
“The return to a more balanced environment for the Australian property market is good news, but property values will retain much of their gains since early 2020 as housing supply falls short of potential demand. It’s very likely,” he said.
Cities where housing is still affordable in Australia
Source link Cities where housing is still affordable in Australia