A strong year for real estate Down Under with surging price hikes, home values, and luxury property sales
The housing sector in Australia witnessed a triumphant year in 2021 due to surging demand, low-interest rates, and low supply, which set the stage for reaching historic highs in housing value, price growth, and luxury property sales, reported realestate.com.au.
The Australian Bureau of Statistics (ABS) uncovered in their recent report that the total value of the country’s 10.7 million homes soared by AUD487 billion (USD344.7 billion) to a record-breaking AUD9 trillion in the September quarter of last year. The median price of homes also surged by AUD821,700 from AUD863,700 in the June quarter.
“The total value of residential dwellings in Australia surpassed AUD9 trillion for the first time. The value of Australia’s dwelling stock has risen by nearly AUD1 trillion in the past six months. By comparison, the previous increase of just over AUD1 trillion took 15 months, increasing from AUD7.2 trillion in the December quarter of 2019 to AUD8.4 trillion in the March quarter of 2021,” shared Michelle Marquardt, head of prices statistics at ABS.
Of the total value of homes, New South Wales recorded 40 percent, roughly AUD3.7 trillion. The mean price of homes in this state rose to a peak of 1.1 million.
The home prices in regional properties also skyrocketed from 3.48 percent in April 2020 to 29.6 percent in November 2021, added realestate.com.au. The firm stated that this growth is largely due to “net regional and interstate migration trending above long run averages.”
The past year has also shown a rising interest in regional homes as this sector has exceeded the price growth of those in capital cities combined. The affordable homes in these areas have caught the eye of buyers who have now found themselves seeking larger homes and needing more space as they embrace the work-from-home setup.
The country’s AUD3-million suburb club grew twofold again in the past year as the demand for luxury properties shot up. With rising household wealth, low rates, strong savings, and without the option to travel abroad for a while, Australians and returning expats have reconsidered their demands, now opting to upgrade their lifestyle with a new luxury home.
The Property Report editors wrote this article. For more information, email: [email protected].
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