Australia’s real estate heats up.
The turn of the decade has seen the value of Australia’s property market spring up. This comes at the back of a previous ten years that saw properties in places like Sydney maintain relatively the same value. Property values in various areas of Sydney have risen by between 20-60% over the past three years. Whilst doomsday predictors have claimed that the Australia’s real estate market may have heated up a bit too much, they probably haven’t. Here we hope to look at the hot real estate areas in Australia as well as those with huge potential for growth.
Sydney leads the way
Over the last 24 months, Sydney has sought to maintain top spot amongst the least of hot real estate areas in Australia. This has seen the value of property prices in suburbs like Vaucluse notch up a 23.5% rise in value. The average price of a property in Vaucluse is currently approximately $3.71 million. Consistent with prediction last year, areas like Blacktown and Leichhardt has also seen a surge in property values. Although the most growth has been in the most expensive parts of Sydney, it is expected to be more evenly spread over the next five years as investor try to diversify.
Melbourne’s inner city prices skyrocket
Melbourne’s greatest growth has been in the inner city. This like other cities in Australia has seen properties close to amenities and public utilities rise. Despite this areas with lesser access to these amenities and utilities have seen value rises ranging from 30% – 40%. This has been particularly so in areas like Mount Eliza and Murrumbeena. However, with the sudden rise in demand for family homes, the prices of houses in the suburbs will hopefully stabilize.
Brisbane is the smart investor’s choice
Despite the growth in values of properties in Brisbane being about 50% lower than hotter areas like Melbourne and Sydney, Brisbane is high on the watch list. There are many reasons why Brisbane is one of the hot real estate areas in Australia. Firstly, the affordability of this city is it’s chief attraction to investors. It is possible to make a purchase for two houses in Brisbane for less than the price of one in Sydney. With the low prices of houses in Brisbane are improved earnings in rentals. This makes Brisbane the choice of a smart investor.
Various factors have led to the surge in property prices in Australia. These have included undersupply of housing, nearness to private schools, and public utilities like train stations as well as the political stability. These issues have led Sydney, Melbourne and Brisbane to top the list of hot real estate areas in Australia. So whilst doomsday predictors may predict a looming danger, Australia continues to be a hotcake amongst smart real estate investors.