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Aussie property prices
As of June 2008, the average house price in Australia had risen to AUS$459,216, an increase from the previous figure of AUS$458,977 in the March quarter.
According to the March 2008 figures, the most expensive Australian capital in which to live is Sydney, with its average price of AUS$542,000 compared with the lowest average price in Hobart, AUS $325,000.
There's a different picture for each of the Australian capital cities – Melbourne has seen an increase of 4.9 per cent compared to the previous quarter increasing the average house price to AUS$451,000. In terms of price, Canberra is next and has seen a drop of 3.2 per cent compared to the previous quarter leaving the average house price at AUS$450,000.
Darwin, Brisbane and Adelaide all saw their average price increase, and now have average house prices of AUS$423,299, AUS$420,300 and AUS$366,000
respectively.
The only capital city to have an overall drop in house prices between the March auarter of 2007 and the March 2008 quarter was Perth, where the average price dropped by 2.6 per cent. Perth's house prices had rocketed in the past few years due to the demand for housing in the city galvanised by the creation of new jobs and improved infrastructure. Perth also had the highest price drop for the March quarter – prices fell by 3.7 per cent compared with the previous quarter.
The least affordable state in which to own a home is now New South Wales, which has taken the title from Queensland for the June quarter of this year.
The REIA calculate the affordability by working out the percentage of a families income is being used for loan repayments. Overall, the most affordable state is Australian Capital Territory, which keeps its position from the previous quarter.
Commenting on the current housing market figures, Noel Dyatt, President of The Real Estate Institute of Australia (REIA), said: "The housing market has cooled significantly in the first half of 2008 after a sustained period of higher interest rates and rising living costs. It is hoped that official interest rate cuts announced this month will give renewed confidence to the housing market."
The rental market saw continued shortages, with record rents in Darwin and an incredibly low vacancy rate of 0.8 per cent. Dyatt continues: "Vacancy rates remain at record lows in most capital cities around Australia, although there was a significant improvement in Perth." Rents increased in Perth, Brisbane and Sydney, but there was a drop in Hobart and Canberra.
This news comes as Aussies struggle with repayments on loans due to high interest rates. "Home owners continue to suffer following a sustained period of high interest rates and economic uncertainty," Dyett adds. "The 2008 Housing Affordability Report shows deterioration in both home and rental affordability across every state and territory in Oz for the first time since March 2004."
As a proportion of family income, repayments on the average home loans increased to 39.8 per cent for the June 2008 quarter. This is the highest they have been since the REIA began recording the figures 22 years ago.
For more information, go to:
www.reia.com.au
Related articles:
Affordable abodes
Buying and selling property in Australia
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