Australian Property Affordability Sees Improvement

Posted on January 31st, 2013 · Posted in News

There has been a moderate rise in affordability in the Australian property market over the past year, improving to 6.5 from a score of 6.7 on the 9th Demographia International Housing Affordability Survey.

This has largely been due to rising incomes and a fall in house prices, although this is not a situation that has benefited every part of the country.

Each of the five major markets within Australia continues to be unaffordable, with Sydney revealed to be the most expensive with a rating of 8.3 on the index.  Melbourne was the second least affordable with a 7.5 rating, followed by Adelaide, Perth and Brisbane.  Smaller markets including Port Macquarie, Coffs Harbour and the Sunshine Coast also ranked highly on the unaffordability index.

In resource-rich areas, analysts believe that more affordable housing will be needed to encourage people to live in such regions, which is not possible while urban consolidation policies are in place.

RP Data recently found that units generally offer better investment opportunities than houses in Australia, as they have annually grown 1.1 per cent in value over the past five years.  Capital city unit prices have also thrived, giving people the chance to get on the property ladder in urban areas.

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