New figures bust Aussie property myth
The idea that house prices double roughly every decade has been called into question.
Analysis by CoreLogic shows national median house prices have risen 51% over the last decade, while median unit prices increased 44%. While price growth has been strong, CoreLogic researcher Cameron Kusher suggested it debunked the “popular myth in Australian real estate” that property prices double every seven to 10 years.
But many suburbs have seen prices double over the time period, Kusher said.
“Taking a more granular look at the housing market, there were 4,048 individual suburbs that had at least 10 house sales over the 12 months to both June 2006 and June 2016 and 1,665 suburbs that had at least 10 sales over both periods for units. Of the 4,048 suburbs nationally for houses, only 573 suburbs or 14% have seen the median selling price of a house double over the past decade. For units, only 159 of the 1,665 suburbs nationally, or 10%, have seen median prices of units double over the past decade,” Kusher said.
In fact, Kusher said, Melbourne, Sydney and Darwin were the only capital cities in which more than 10% of suburbs saw prices double over the last decade. There was a wide disparity between the capitals, though. While 19% of Darwin’s suburbs saw median prices double, 44% of Sydney suburbs doubled in price, while 51% of Melbourne suburbs doubled.
Kusher said the analysis highlighted the importance of buying strategically.
“On average most properties have fallen well short of doubling their value over a decade. This is highlighted by this data which shows far fewer owners have seen their real estate asset double in price over the past decade than those who have. Those which have seen their property price double over the decade are most likely to be situated in Sydney, Melbourne or Darwin while in other capital cities and regional areas of the country the prospects of prices having doubled over this period are much lower,” he said.
- Why home loan interest rates are rising in 2022
- Rent gone up? Here’s how to buy your first home sooner
- 8 big economist predictions for 2022 (and how they impact you)
- Housing affordability is in the toilet (and the toilet’s getting expensive)
- Room for improvement: Renters are less happy, more stressed than homeowners