Residential land prices at record high
The median price of vacant residential land increased last year by the largest annual percentage since 2011. CoreLogic RP Data reports that across the combined capital cities the price rose by 6.2 per cent to $257,500 which is a record high. However the typical area of vacant land has increased to 480 square metres from 462 square metres at the end of 2013. That reverses the trend over recent years with a vacant lot having a median area of 684 square metres 20 years ago. Finding lots for less than $200,000 is now harder than ever with slightly more than 29 per cent of all land sales falling at or below that price compared to 32 per cent at the end of 2013.
As usual there are regional variations with Sydney’s median cost for vacant residential land at $350,000 while in Hobart it’s $125,000. In between are Perth ($305,000), Melbourne ($240,000), Brisbane ($224,000) and Adelaide ($199,500). Sydney’s price, although the highest, is little changed in a decade while Perth and Melbourne have increased the most.
Source: CoreLogic RP Data
Not all of Sydney is enjoying a property boom
While many parts of Sydney have seen high rises in prices and sales volume, some suburbs are missing out. The average increase citywide has been 30 per cent over the last two years with some suburbs gaining 50 per cent, others have seen declining prices. The Domain Group reports that the worst-performer has been Burraneer where prices have increased by 3.4 per cent over two years, but that’s less than inflation. Bronte, Sylvania Waters, Seaforth, Woollahra and Windsor have all increased by less than 10 per cent. However, there are signs that things may be turning a corner in some of the weaker suburbs; real estate agent David Highland said the market is picking up in Burraneer especially in high-value waterfront homes.
Source: The Domain Group
Rich Aussies get richer while poorer households struggle
The richest Australians continue to get richer while poorer households have only seen moderate improvement in their living standards. That’s according to a new report from the National Centre for Social and Economic Modelling (Natsem) which shows that the richest 20 per cent have seen their living standards improve by 18 per cent over the past 25 years. Single parents have experienced the slowest rate of improvement while couples without kids have seen the fastest. Although there was a stagnant period from 2012-2014 when standards did not really move, they are now increasing again and once again its richer Aussies who are benefitting more, helped by lower interest rates and lower exposure to higher utility costs. Tasmania and the Northern Territories have had lower improvement in living standards than other areas, with NSW leading. Overall the average Australian household 58 per cent better off than 1988 levels.
Source: News Corp Australia Network
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan