Median property price to hit $1 million; and not just in Sydney
Last week a report by SQM Research showed that Sydney had reached a milestone with the median property price of $1 million and it seems that other major Australian cities will get there, too. New data from Home Loan Experts forecasts that the $1 million median will be the norm in the other capital cities within a decade, with the exception of Hobart which will be around $740,000. They won’t be catching up with Sydney though as the median there is set to near $2 million in the next 10 years. With such high prices and income not keeping up, the company expects apartments to be increasingly popular due to relative affordability.
Meriton boss praises Chinese investors
The boss of Meriton group says that Chinese buyers have ensured that mansions continue to be built in Sydney and Melbourne. Harry Triguboff says that his firm sells the vast majority of its homes to local purchasers of Chinese origin and foreign investors, and without that market there would be no mansions. Triguboff told The Australian that this activity means that prices are higher but says that it helps to maintain confidence in the level of house prices and has a knock-on effect to other parts of the economy.
First-timers get on the property ladder with help from mum and dad
With property prices at their current high it’s creating both good and bad news for younger Australians. While it may be harder currently to save a deposit and take out a home loan in a more expensive market there has been an increase in parents helping out. With increased equity in their own properties mums and dads are freeing up that cash to invest in homes for their children. With plenty of mortgage options available for investors this trend is a win for both parents and offspring and is likely to further grow in popularity.
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