The real estate industry is one of the most interesting and dynamic in the Australian economy. Understanding the housing market in Australia means having a good idea of how the economy of the country functions. If you follow the news, the housing market in the country is either experiencing a boom or a bust. However, here are essential things you need to know about the real estate market in the nation:
- It Is Not Cheap
Although it can be said at the moment that the housing market is still recovering, it is still costly. Information from the Demographia Housing Affordability Survey shows that the average multiple of house prices relative to income earned is 5.7 times in Australia. This is against 4.8 in the United Kingdom and 3.5, even in the United States. Melbourne and Sydney have some of the most expensive properties on offer. For those who want to invest in this sector, they have to be prepared solidly. This is particularly true for those in areas like Melbourne, Sydney, Perth, Hobart, Brisbane, and Adelaide.
- There Are Countless Choices
The Australian housing market has a lot and practically endless choices for all investors. From vintage homes to ultramodern villas to eco-friendly penthouses, the country has got it all. There is never a shortage of possibilities and alternatives. If you are looking for retail leasing options, there are plenty of those too.
- There Is Gross Undersupply
The population of Australia is surging, but the housing market is not growing as fast to catch up with the census figures. About 75,000 new homes are needed on an annual basis to meet the population rise, but this has not been possible. This has led to a rise in the price of homes. This is the primary reason for the costly price tags on Australian homes. I always consult Specialist retail valuers to ensure I get the correct numbers, for this reason!
- Prices are Not Stable
Over time, the trend of prices in the Australian housing market has been unpredictable. There are times when prices will experience a sudden plunge. Then there are seasons when the prices will keep rising without an end in sight. So, while it is true that property is generally pricey in the country, it is also true to state that the prices fluctuate from time to time.
- The Immigration Factor
Some economists think that increased levels of immigration are putting pressure on the housing sector of the country’s economy. They opine that a steady rise in new arrivals is driving up prices and reducing affordability all over the country.
- Chinese Influence
In recent years, there has been a considerable inflow of funds from Chinese investors into the Australian housing market. Some of the most valuable assets in the sector are now firmly in Chinese hands. Some of these owners are private Chinese citizens, while some other investments were done on behalf of the Chinese government. The opinion is divided among the Australian public on this.
- It Is A Big Deal
The culture and tradition in Australia make owning your own home a huge deal indeed. There is the concept of the Great Australian Dream, where the focus is on owning your own home. The government, over time, plays a very active role in promoting homeownership by citizens. To ensure this, several initiatives like tax incentives are put in place.