The real estate market is one of the largest and most complex markets in the world. It is also one of the most popular industries to work in, because property is a basic human need. Real estate agents help people buy and sell land, homes, and other properties.
The Australian property market is one of the most popular markets for investors and home buyers. The Australian property market has been growing steadily in recent years, with a number of factors contributing to this growth.
Read on to learn more about property facts!
1) House prices drop in Australia
According to Bloomberg: “The market hardest hit is bellwether Sydney, where home values have dropped almost 5% in the past three months, compared with 2% in the A$9.9 trillion ($6.8 trillion) national market. Further falls are inevitable as the Reserve Bank, which meets again in just under two weeks, raises borrowing costs at the fastest pace in a generation.”
Due to the expensive nature of Australian property and its associated high debt levels, there have been numerous calls for a crash in the Australian property market over the last 15 years.
However, all of the elements are not yet in place for a crash to occur.
The consensus remains that a national housing crash, as opposed to periodic drops in some cities, requires much higher unemployment, much higher interest rates, and/or a significant oversupply.
However, while the risk of a recession has increased, it remains unlikely, aggressive rate hikes are unlikely, and while property supply still has more upside, it is unlikely to lead to a large oversupply as new dwelling approvals are now falling.
Before investing in real estate, you might want to consider getting advice from a property lawyer.
2) In Australia, real estate is big business
Australia has one of the world’s most densely populated populations, with the vast majority residing in coastal metropolitan areas. With its exotic locations, Australia’s real estate industry is on the rise, with locals, tourists, and foreigners all wanting a taste of what the country has to offer.
Furthermore, it is worth noting that residential real estate accounts for more than half of total household wealth.
3) Houses are becoming less affordable in big cities
The affordability of housing in densely populated cities like Sydney and Melbourne remains a pressing issue for policymakers. Those attempting to enter the property market in Australia’s major cities frequently face difficulties.
It’s a perfect market situation.
According to ABC News: “Record property prices forced many into choosing between committing to saving for a home, trying their hand in the stock market or just giving up on home ownership altogether.”
The reality is that homeownership in these cities is rapidly becoming unaffordable. Much of this is due to an increase in the wealth, job opportunities, and living standards of the people who live in these cities, as well as a significant undersupply of dwelling types such as suburban homes, which families would prefer to occupy.
In conclusion, the Australian real estate industry has its own highs and lows, but that does not change the fact that living or purchasing a home in Australia can be complex.
There is no doubt that those who are able to invest in the industry are rewarded with rising asset values.
Australia remains one of the best countries for real estate investment, thanks to its welcoming people, plentiful job opportunities, fantastic weather, good food, exotic locations, and, to top it all off, excellent security measures.