Properties under the $400k mark are vanishing
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.