Properties under the $400k mark are vanishing
Rising prices have meant fewer properties on the more affordable end of the spectrum.
Rising prices have meant fewer properties on the more affordable end of the spectrum.New research from CoreLogic shows that the number of properties under the $400,000 mark is dwindling nationwide. In the 12 months to June, only 17% of house sales and 28.4% of unit sales across capital cities were for less than $400,000.
“Even when comparing these figures to just a year earlier, the decline in the proportion of sales under $400,000 is extremely noticeable for houses (19%), and somewhat less so for units (29.6%),” CoreLogic research analyst Cameron Kusher said.
Kusher said that by comparison, a decade ago 53.1% of capital city houses and 66.3% of capital city units sold for less than $400,000.
The trend is most marked in Sydney, where only 3.5% of houses sold below the $400,000 mark, compared to 35.5% a decade ago. Likewise, only 7.4% of Sydney units sold for less than $400,000, compared to 53.9% a decade ago.
“As dwelling values continue to increase, we anticipate that over the next 12 months the proportion of properties selling for less than $400,000 will further reduce and, in the way that the rising number of sales of properties for at least $1 million shows the deteriorating affordability, so too does the significant reduction in the availability of properties priced under $400,000,” Kusher said.
Kusher argued that more needed to be done to increase housing supply.
“A greater supply of stock that could potentially reduce prices would at the very least be a good start. However, the supply needs to be supported by sufficient infrastructure and employment opportunities,” he said.
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can i used a first home buyer scheme as investment purpose ? thank you
Hi Rptan,
Thanks for your question.
The First Home Owners Grant is not available if you will purchase an investment property.
As a general rule, you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, and will occupy the property as your principal place of residence within 12 months of the settlement and live in it continuously for at least six months.
Cheers,
Anndy