Australian Property Values Increase to Record New Highs Not Seen Since 2003
The Australian housing market has risen to new highs, with levels being the highest since August 2003. Data reported by CoreLogic has shown that Australian home values have increased by 2.1% in February.
The average capital city house price increase was 2%, and Sydney & Hobart led the pack with an average increase of 2.5%, while Melbourne and regional markets rose an average of 2.1%.
This hike in the housing market brings Sydney’s median home value to $895K and Melbourne’s to $717K. The median home value for Australia overall is now $598K.
CoreLogic’s head of Australian research, Eliza Owens, said that fewer properties are being sold, and many are looking to buy. Also noted in their report are factors supporting this price boom, which include a combination of record low mortgage rates, improvements of economic conditions, government incentives and low advertised supply levels. One government incentive that has been extended for the first three months of 2021 is the HomeBuilder grant for new home builders.
A survey conducted by the Sydney Morning Herald found that predictions on average value for prices in Sydney to grow 5.9% in 2021 and 4.5% in 2022, while Melbourne prices will rise 4.5% in 2021 and 5.0% in 2022.
This new housing data aids the Australian dollar to hold the upside above 0.7750. AUD/USD was last seen trading at 0.7758%, up 0.7% on the day.